TMI Blog1998 (10) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty of Rs. 1,00,000 imposed under s. 271B of the IT Act, 1961. 2. The facts concerning this matter are that in view of the provisions of s. 44AB of the IT Act the assessee Corporation was required to get its accounts audited and to obtain the audit report before the specified date which was 31st Dec., 1990 for the assessment year under consideration. The assessee obtained audit report o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as the assessment dt. 23rd March, 1993 passed under s. 144 of the IT Act had been set aside by the CIT(A)-II vide his order dt. 14th Oct., 1993, there was no cause of action for continuing with the penalty proceedings. The version of the assessee was not accepted by the AO who held that the assessee had failed to get the books of account audited within the due date as provided under s. 44AB o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IT Act. The learned Departmental Representative further submitted that the CIT(A) was not justified in deleting the penalty. 5. Before us, the learned counsel for the assessee submitted that compliance of the provisions contained in s. 44AB has been made on behalf of the assessee. Our attention was invited by the learned counsel for the assessee to the report dt. 31st Dec., 1990 and Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. We have carefully considered the facts and circumstances of case and the rival submissions. The report in Form No. 3CA is dt. 31st Dec., 1990, along with this report Form No. 3CD was also filed which was dt. 31st Dec., 1990. Thus, the assessee obtained the tax audit report from its Accountants on the due date i.e. 31st Dec., 1990. Coming to the aspect of statutory audit report, the reasons assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tirety of the circumstances and particularly in view of the fact that audit report was filed in compliance with the provisions of s. 44AB by the assessee within the specified time, we are of the considered opinion that no penal liability can be fastened on the assessee under s. 271B of the IT Act. We, therefore, uphold the findings of the learned first Appellate Authority and sustain the deletion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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