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TMI Blog2010 (9) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) while upholding penalty under Section 271B, against the revenue and in favour of the assessee, appeal allowed [Kaysons India's case (2000 - TMI - 14797 - PUNJAB AND HARYANA High Court - Income Tax)] - IT APPEAL NO. 115 OF 2003 - - - Dated:- 28-9-2010 - ADARSH KUMAR GOEL AND AJAY KUMAR MITTAL, JJ. Pankaj Jain for the Appellant. Tajender K. Joshi for the Respondent. ORDER Ajay Kumar Mittal, J. This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 20.1.2003 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 1091/CHANDI/98 for the assessment year 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 8.6.1991 of H.R. Mittal and Co. during the course of reassessment proceedings. Accordingly, the Assessing Officer initiated penalty proceedings under Section 271B of the Act and imposed a penalty of Rs.1 lac on account of failure of the assessee in obtaining the report and furnishing the same with the return. Against the penalty, the assessee filed an appeal. The Commissioner of Income Tax (Appeals) [in short "the CIT(A)"] vide order dated 31.7.1998 allowed the appeal and deleted the penalty imposed by the Assessing Officer. Being aggrieved, the revenue went in appeal before the Tribunal, who vide order dated 20.1.2003 set aside the order of the CIT (A) and restored that of the Assessing Officer which give cause to the assessee to appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant time, i.e. prior to 1995, reads as under:- "271-B if any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or obtain a report of such audit as required under section 44AB or furnish the said report along with the return of his income filed under sub-section (1) of section 139 or along with the return of income furnished in response to a notice under clause (i) of sub-section (1) of section 142, the Assessing Officer may direct that such person shall pay, by way of penalty a sum equal to one half percent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Section 139(4) of the Act. The Division Bench while adjudicating the issue in favour of the assessee had held:- "It is, therefore, evident that the default or failure to file the return along with the audit report on or before the specified date is not hit by the provisions of section 271B. It is not the case of the Revenue that the assessee has failed to get the accounts audited or has failed to obtain the report of such audit in terms of section 44AB before the specified date. It is also evident that no return had been filed either under sub-section (1) of section 139 or in response to any notice under clause (i) of sub-section (1) of section 142 and as such there could possibly be no default of not furnishing the audit report ..... X X X X Extracts X X X X X X X X Extracts X X X X
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