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2024 (6) TMI 1201 - AT - Income TaxIssues: Appeals against penalty orders under section 271B of the Income Tax Act, 1961 for Assessment Years 2011-2012 & 2012-13. Analysis: 1. Issue 1 - Appeal for AY 2009-10: The appeal challenged the penalty imposed under section 271B for not auditing books of accounts as per section 44AB. The assessee argued non-maintenance of accounts under section 44AA absolved them from section 44AB requirements. The Revenue contended that the assessee failed to comply with section 44AB provisions and cited relevant case laws. The tribunal noted the non-maintenance of accounts as the primary offense, subject to penalty under section 271A, not 271B. Citing judgments, the tribunal ruled in favor of the assessee, setting aside the penalty. 2. Issue 2 - Appeal for AY 2012-13: The identical issue from the previous appeal was raised for AY 2012-13. The tribunal applied its findings from the earlier appeal, ruling in favor of the assessee for the current assessment year as well. Both the assessee's appeals were allowed based on the same reasoning and decisions. The tribunal emphasized consistency in its approach across the two appeals. 3. Conclusion: The tribunal, comprising Accountant and Judicial Members, analyzed the penalty orders under section 271B for the mentioned assessment years. It differentiated between non-maintenance of accounts and non-compliance with audit requirements under section 44AB, ultimately ruling in favor of the assessee in both appeals. The judgments cited and the factual distinctions highlighted played a crucial role in the tribunal's decisions. The appeals were allowed, and the penalties were set aside in both cases, providing relief to the assessee.
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