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2022 (6) TMI 411 - AT - Income TaxPenalty u/s 271B - Tax Audit - delay in getting the books of accounts audited and furnishing the same - period of limitation for passing penalty orders - assessee have failed in complying with the provision of section 44AB - HELD THAT:- It is not disputed by both the parties that there is no finding in the assessment order for levy of penalty for the alleged default u/s. 271B of the Act and it is also not disputed that after passing of the order on 31.12.2011, the alleged notice is only issued on 16.06.2014 after two and half year time which is very abnormal time to fasten the liability on account alleged default after the assessment is completed. In between there is not notice and even the assessment order is silent on the levy of the alleged penalty. The argument of the ld. AR has thus, forced and is also supported by the judicial decisions relied upon and as extracted here in above. In the light of the above discussion the levy of penalty by the assessing officer after passage 30 months after the completion of the assessment, we are of the opinion that the penalty proceedings are barred by limitation and consequently penalties levied under section 271B cannot be sustained and thus we delete the said penalty levied under section 271B - Assessee appeal allowed.
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