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2019 (8) TMI 1116 - AT - Income TaxPenalty u/s 271B - non-audit of books of account within the prescribed time limit provided - AY 2004-2005 - the penalty order was barred by limitation - HELD THAT:- The assessee got his books of accounts audited on 28/03/2014 which was made available to the AO and no prejudice has been caused to the Revenue. Now the short question that arises is whether in this scenario, penalty u/s. 271B can be levied or not. In our considered opinion, the assessee had only committed technical venial breach which does not create any loss to the exchequer as the audit report was available to the AO before the completion of the assessment proceedings. Assessment Year 2008-2009 - It was held by the Hon’ble High Court in the case of Bisauli Tractors [2007 (5) TMI 181 - ALLAHABAD HIGH COURT] that the if a person has not maintained the accounts book or any accounts the question of its audit does not arise and in such an event the imposition of penalty is under the provision contained in section 271A. Therefore, it was concluded by the Hon’ble Allahabad High Court that the penalty proceedings u/s 271B would not apply. No contrary judgment of the Hon’ble jurisdictional High Court has been brought to our notice, hence, by following the judgment of the Hon’ble Allahabad High Court in the case of Bisauli Tractors (supra), we delete the penalty imposed u/s 271B in respect of assessment year 2008-2009. It is ordered accordingly. AY 2009-2010 - The search and seizure in assessee’s case was conducted on 06. 01. 2009. The assessee had obtained the copy of all the seized records. The demise of the Chartered Accountant in the year 2016 cannot be a reason for not auditing the books of account for assessment year 2009-2010.Therefore, there was no reasonable cause as mandated u/s 273B for deletion of the penalty imposed u/s 271B for this AY.
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