Despite the income being exempt, upon the turnover exceeding the specified amount, the requirement of getting the statutory audit done and obtaining the required audit report u/s 44AB of the Act in Form-3CD is mandatory.

6. TS-184-ITAT-2026(Kol)

Jalpaiguri Zilla Regulated Market Committee v. ITO

A.Y.: 2017-18

Date of Order : 10.2.2026

Section: 44AB, 271B

Despite the income being exempt, upon the turnover exceeding the specified amount, the requirement of getting the statutory audit done and obtaining the required audit report u/s 44AB of the Act in Form-3CD is mandatory.

FACTS

M/s. Jalpaiguri Zilla Regulated Market Committee (AOP) did not file its return of income for AY 2017-18. In view of the information available with the Department that the assessee had deposited cash in its bank account during the FY 2016-17, a notice u/s 142(1) of the Act was issued asking the assessee to furnish its return of income for the AY 2017-18, but there was no response from the assessee in this regard. Therefore, a show cause notice was issued to the assessee, which also resulted in non-compliance.

The Assessing Officer ('AO') therefore completed the assessment u/s 144 of the Act by treating the total credits amounting to ₹2,40,65,509/- in its bank account as the total