2007 (4) TMI 137

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..... revenue contention was not valid and penalty set aside
JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1), (2) of the Income-tax Act, 1961, hereinafter referred to as "the Act" for opinion of this court: "4. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in cancelling the penalty .....

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..... assessee, however, filed the audit report along with its return furnished under section 139(4). The relevant particulars are as under : Assessment years Due date for obtaining audit report under section 44AB Audit report under section 44AB obtained on Return of income under section 139(1) due on Audit report under section 44AB filed along with return under section 139(4) on 1990-91 1991-92 .....

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..... went in second appeal before the Tribunal. The Tribunal has cancelled the penalties levied under section 271B by relying upon the various decisions of the Tribunal wherein the ratio of the hon'ble Supreme Court in the case of Hindustan Steel Ltd. v. State of Orissa [1972] 83 1TR 26 and in the case of CIT v. Vegetable Products Ltd. [1973] 88 ITR 192 (SC) were considered. 8 We have heard Sri A. N. .....

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..... r section 44AB applied was merely to get the accounts audited and obtain an audit report before the specified date." 10 As in the present case we find that the audit report as required under section 44AB of the Act was obtained by the assessee before the date specified under the aforesaid section, penalty under section 271B of the Act was not exigible. 11 We, accordingly, answer the question in .....

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