Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Audit u/s 44AB Not Required and Penalty u/s 271B Not Leviable When No Books of Account Maintained: ITAT
Auditing and AssuranceIncome Tax
The ITAT clarified that audit under section 44AB of the Income Tax Act is not applicable where no books of account are maintained, and therefore penalty under section 271B cannot be imposed. The ruling provides relief to small taxpayers and businesses who may not be maintaining books due to genuine reasons. The judgment emphasizes the principle that penalties should not be levied mechanically without considering the factual circumstances.
