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2006 (7) TMI 141 - KARNATAKA HIGH COURTPenalty for not getting account audited – limitation - On noticing the failure to get the accounts audited under section 44AB, a notice was issued on June 8, 1993. Penalty was also levied on December 15, 1993, by the Department. The said penalty was confirmed by the Commissioner. The Tribunal has set aside the penalty on the sole ground of limitation. It is in these circumstances, the Revenue is before us. – A combined reading of sections 271B and 275(1)(c) would show that the six-month period of limitation is with reference to initiation of proceedings in terms of section 275(1)(c) of the Act. In the case on hand, it is seen that initiation was done on June 8, 1993, and the penalty was levied on December 15, 1993. It is within six months from the date of initiation of penalty proceedings. - Tribunal is not justified in deleting the penalty on the ground of limitation
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