2002 (12) TMI 66 - HC - Income Tax

Submission of audit report - assessee had given adequate explanation for the delay in submitting its audit report. - section 44AB - Admittedly, the petitioner submitted the audit report on September 9, 1986, which was within the extended time. Hence, the Tribunal rightly held that the provision for penalty was not attracted. Moreover, the words without reasonable cause have been deleted from section 271B by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, with effect from September 10, 1986.

Summary

The High Court of Allahabad dismissed an appeal under section 260A of the Income-tax Act, 1961, against the order of the Income-tax Appellate Tribunal for the assessment year 1986-87. The Tribunal ruled that the penalty provision was not applicable as the audit report was submitted within the extended deadline of October 31, 1986. The words "without reasonable cause" were removed from section 271B in 1986. The Commissioner of Income-tax (Appeals) accepted the explanation for the delay in submitting the audit report. The appeal was dismissed.