Penalty u/s 271B , Income Tax

[madhu tapuriah]

An assessee got his accounts audited u/s 44AF of the Income Tax Act, 1961 for assessment year 2007-2008 but could not file the income tax return.Whether penalty u/s 271B of the Act can be levied by tho ITO ?

Posts / Replies

[Surender Gupta]

Penalty under section 271B is applicable for Failure to get account audited u/s 44AB only. Sub section (5) of section 44AF refers to provisions of section 44AB. I believe that the issue is debatable and you may get favor at appropriate level and escape penalty.