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2012 (10) TMI 807 - HC - Income TaxPenalty u/s 271-B - failure to get accounts audited - violation of the provisions of Section 44-AB & its 2nd proviso - ITAT deleted the levy - Held that:- Apart from the fact that the audit of the respondent-society under Section 64 of the U.P. Cooperative Societies Act, 1963, has to be carried out by the Accountant appointed by the Registrar of societies, who has specific qualifications, there was an order passed by the High Court directing that no cooperative society in the State of U.P., will get its account audited through the private Chartered Accountants. Thus it cannot be concluded that Tribunal committed any error in law in observing that in view of the order issued by the High Court, which was binding upon all the cooperative societies in the State of U.P. including the respondent-assessee, the respondent cooperative society could have got its account audited through a chartered accountant - in favour of assessee. Under Section 271B there is discretion with the income tax authorities to award penalty and this discretion has to be exercised fairly and reasonably on the facts and circumstances in accordance with the settled judicial principles.
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