TMI Blog2006 (5) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacturing and sale of ayurvedic medicines. The assessee-firm had a turnover of sales at Rs. 4.10 crores in the previous year relevant to the assessment year 2000-01 and hence, the assessee was required to get the accounts audited as per the provisions of section 44AB of the Act on 31-10-2000 and further ought to have furnished the same on the same date. It was found by the Assessing Officer that the audit report was dated 31-1-2001 and the same was filed on 31-1-2002 along with the return of income. The Assessing Officer, therefore, came to the conclusion that the assessee failed to comply with the provisions of section 44AB and hence is liable for the penalty under section 271B. The Assessing Officer issued show-cause notice to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 140A may be a reasonable ground for non-levy of penalty under section 140A(3), the same cannot be a valid ground for penalty under section 271B. No interference in the Assessing Officer s order is called for. Appeal stands dismissed." Now, the assessee is before us. 4. We have heard the learned Chartered Accountant Shri R. Sreenivasan for the assessee and Smt. T.R. Indira, learned Departmental Representative for the revenue. The ld. AR submitted that the assessee-firm was having voluminous transactions and assessee-firm was having voluminous transactions and assessee-firm could not furnish some of the important required information to their Chartered Accountants. It was further submitted that tax audit could be completed on 31-1-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay in completing the audit. As far as the late filing of the audit report is concerned, the assessee filed the audit report only on 31-1-2002. That is also not disputed in this case. But we have to examine that merely because there is a failure on the part of the assessee to furnish the audit report as contemplated under section 44AB, then penalty is directly attracted. It is true in this case that the assessee could have furnished the audit report without filing the return of income. 6. As far as penal proceedings are concerned, it is a well settled proposition of law that penal proceedings are quasi-criminal in nature. The principles governing the imposition of penalty had been laid down by the Hon ble Supreme Court in the case of H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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