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TMI Blog2006 (3) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... that penalty has been deleted by the learned Commissioner of Income-tax (Appeals). The quantum of penalty is only Rs. 32,518. Under Instruction No. 1979, dated 27th March, 2000, the Central Board of Direct Taxes fixed monitory limits for appeals to be filed by the Dept. before various appellate authorities. Under this instruction, the revenue is not entitled for filing the appeal before the Tribunal if revenue effect does not exceed the monitory limit of Rs. 1 lakh. This monitory limit has been raised to Rs. 2 lakhs by the Board vide recent instruction. 4. Keeping in view, the monitory limit fixed by the Board for filing appeal, this appeal requires to be dismissed on this ground. However, it will be useful to dispose of the appeal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the above, the learned Commissioner of Income-tax (Appeals) deleted the penalty after observing as under : "From the facts enunciated above, it is noted that there was a reasonable cause for the delay in the non-compliance by the firm of the provisions of section 44AB. In the first place, certain books of account relevant to the completion of the accounts were with the Assessing Officer. Secondly, the accountant who was conversant with the accounts of the firm and the other firms was not in a position to attend to his duties. The Madhya Pradesh High Court, in ITO v. Nanak Singh Guliani has held that the provision of section 271B given a discretion to the Assessing Officer not to impose penalty in cases where there is a reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at a cause can be said to be reasonable if it is not actuated by bad faith or on false grounds. In the instant case, the assessee has offered the explanation before the Assessing Officer in not being able to get his accounts audited before the due date. In support of the illness of the Accountant, the assessee filed medical certificate. The learned Assessing Officer has not been able to establish that the reasons given by the assessee were false. After survey, the assessee has to attend post survey proceedings. Unless the opening balances are written, the accounts cannot be audited. Moreover, it is also not denied that FD ledger was not released to the assessee. Keeping in view the explanation offered by the assessee before the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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