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2023 (4) TMI 848 - ITAT BANGALOREPenalty imposed u/s 271B - Failure to get books of account audited - Assessee not maintained books of accounts - HELD THAT:- As decided in the case of CIT v. Bisauli Tractors [2007 (5) TMI 181 - ALLAHABAD HIGH COURT] wherein it is held that if a person is not maintained books of account, the question of audit does not arise. imposition of penalty u/s 271A of the I.T.Act for alleged non-compliance with section 44AA of the I.T.Act may arise but the provisions of section 44AB of the I.T.Act do not get violated in a case where accounts have not been maintained at all. Therefore, it was concluded by the Hon’ble Allahabad High Court [2007 (5) TMI 181 - ALLAHABAD HIGH COURT] that the penal provisions of section 271B of the I.T. Act would not apply. In the instant case as mentioned earlier, admittedly, the assessee has not maintained books of account, penalty imposed u/s 271B of the I.T. Act for non-furnishing of audit report does not arise. Therefore, we delete the penalty imposed u/s 271B of the I.T. Act. Appeal filed by the assessee is allowed.
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