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2010 (1) TMI 25 - HC - Income TaxPenalty u/s 271B – AO imosed the penalty but CIT(A) deleted the penalty imposed u/s 271B of the I.T. Act, 1961, on the ground that (a) the audit report was obtained before the specified date, and (b) the penalty proceedings were initiated after several months of passing of assessment order – held that - for both the assessment years 1989-90 and 1990-91, the assessee has obtained the audit reports on 31.10.1989 and 30.11.1990 respectively. However, both the audit reports were filed along with the belated returns on 31.1.1990 and 15.4.1991 respectively. In terms of Section 44AB of the Act, as it existed at the relevant time, the assessee was required to get its accounts audited and to obtain the audit reports for the assessment years 1989-90 and 1990-91 on 31.10.1989 and 30.11.1990 respectively and there was no requirement to furnish the same independently. Thus, the provision was duly complied with and there was no violation of Section 44AB and, therefore, Section 271B was not attracted – penalty not to be imposed
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