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2019 (4) TMI 678 - ITAT DELHIPenalty u/s. 271B - Non furnishing of Tax Audit Report within the prescribed period u/s 44AB - Limitation to impose penalty u/s 275 - HELD THAT:- Issue of finality of the turnover of the business of the assessee was disposed off vide order u/s 250 dated 18-05-2017 in the appeal filed against the assessment order. Find that it is provided u/s 275 that where the relevant assessment order or the other order is subject matter of appeal before the Commissioner of Appeals u/s 246A penalty order has to be passed before the expiry of financial year in the course of which such proceedings have been initiated or within one year from the end of financial year in which order of the Commissioner (Appeals) is received by the Principal CIT - whichever is later. In this case the quantum of penalty to be imposed u/s 271-B was dependent on the outcome of appellate order u/s 250 of the Act in the appeal filed against the assessment order passed by the AO. AO has validly kept the penalty proceedings u/s 27IB of the Act in abeyance and has disposed off the same by 30-10-2017 within the prescribed period after the disposal of appellate order u/s 250 of the Act. The assessee has not furnished any reasonable cause for not getting the accounts audited as required u/s 44AB. It is also noted that the AO has already established for failure of the assessee to get its accounts audited or to furnish a report of such audit as required u/s 44AB vide his assessment order dated 17.3.2016 and the CIT(A) has also confirmed the major part of the addition made by the AO. AO has rightly imposed penalty u/s 271B with the provisions of the Act and therefore, the same was rightly confirmed by the CIT(A), which does not need any interference on my part, hence, uphold the action of the CIT(A) on the issue of dispute and reject the ground raised by the assessee.
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