TMI Blog2006 (1) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... lty cannot be imposed under section 271B - we find no error in the order of the Tribunal and hence no substantial questions of law arise for consideration of this court - - - - - Dated:- 24-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.P.S. Janarthana Raja J.- The present appeal is filed under section 260A of the Income-tax Act, 1961 by the Revenue, in I.T.A. No. 879/Mds/99 dated February 10, 2005, passed by the Income-tax Appellate Tribunal, Madras "A" Bench raising the following substantial questions of law. "1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that no penalty is imposable under section 271B for non-com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct penalty under section 271B. The Assessing Officer rejected the contention and held that it was a clear violation of the provisions under section 44AB and penalty under section 271B is leviable in this case, and levied a penalty of Rs. 1,00,000 under section 271B of the Act. Aggrieved by the order, the respondent filed an appeal before the Commissioner of Income-tax (Appeals) and held that no penalty was imposable under section 271B as the section envisaged levy of penalty for failure to get the accounts audited, obtain a report and furnish the report along with the return filed under section 139(1) or in response to a notice under section 142(1). Since in this case, the report was filed under neither section, the question of specific dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h his return of income filed under section 139(1) or in response to a notice under section 142(1), the submission that the audit report should have been filed within the specified date was not correct, as the specified dates only arise to returns filed under section 139(1) or response to a notice under section 142(1)(i). Hence, when the return was not filed under the provision of law, no default could be made out under section 44AB. In this case, the penalty is leviable only if the assessee fails to get his accounts audited and obtain a report. In this case, the accounts were audited and also the assessee got the audit report, but the same was filed along with the return which was filed belatedly. Hence, penalty cannot be imposed under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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