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TMI Blog1992 (5) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty proceedings under section 271-B and issued a show-cause notice to the assessee. In reply, it was contended that no default under section 271-B was committed, inasmuch as, the said section envisaged the audit of accounts to be completed and the audit report obtained prior to a particular date and that being 31-10-1989 in the present case. The further requirement of law, according to the assessee was the filing of the said report along with the return of income and since both the aforesaid conditions had been satisfied there was no question of imposing any penalty. 3. The ITO considered the aforesaid reply of the assessee and, thereafter set out the various conditions envisaged by section 271-B read with section 44AB of the IT Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be penalised for such default. A reference was also made to the fact that the self-assessment tax amounting to Rs. 144 had also been deposited with the Advocate on31-10-1989. On the basis of the aforesaid arguments it was contended that no penalty be levied inasmuch as, there was a reasonable cause for the delay in the filing of the return. 5. The CIT (Appeals) on a perusal of the record and after examining the aforesaid submissions proceeded to cancel the penalty. According to him, the delay attributable to the counsel could not be used to penalise the assessee. We also referred to the statement made before him during the course of hearing by the said counsel to the effect that the return had been handed over by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 271-B cannot be sustained either in law or on the facts of the case. It is not disputed between the parties that the audit report dated26-9-1989was available with the assessee prior to the 'specified' date and that being31-10-1989. This was the requirement of section 271-B read with section 44AB prior to the amendment brought about by the Finance Act, 1988 w.e.f.,1-4-1989. The change in the law w.e.f., assessment year 1989-90 provided that the audit report was required to be appended along with the return of income filed under section 139(1) or filed in response to a notice under clause (i) of sub-section (1) of section 142. Under the aforesaid two situations a penalty under section 271B was provided for any lapse. The other am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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