9911796707
TMI Blog1999 (11) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment years 1986-87 and 1987-88 the income Tax Appellate Tribunal has referred the following questions of law u/s 256(2) of the Income Tax Act, 1961- 1 Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in cancelling the penalty u/s 27187. 2. Whether, on the facts and in the circumstances of the case the Tribunal is right in law in making a d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.85. In ITRC 270/98, in place of the due dated of 31.7.1987 by which the assessee should have got the audit report, the same was however, obtained belatedly on 16.10.87 and was also filed along with the return on 30.11.87. or account of the delay in getting the audit report, the assessing officer levied penalty u/s 271B, which was cancelled by the Commissioner (Appeals). In the further appeal fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and verified by such auditor and signed by such auditor. Under section 271B, if any person fails to get his accounts audited in respect on any previous year or years relevant to an asst. Year or obtain a report of such auditor s verification u/s 44AB or furnish the said report along with the return of his income filed u/s 139(1) or along with the report on income furnished in response to a notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no delay with reasonable cause for obtaining the audit report. 5. The submission of the leaned Standing Counsel for the department is that the audit report was obtained in the extended time and as such there is violation of the provisions of sec. 44AB and that obtaining of the report itself made the default as the absolute default. 6. Arguments of both the learned Counsel for the parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not have been audited. In any case the finding which has been recorded, that there was reasonable cause, cannot be considered to be perverse or illegal in any manner. In these circumstances, we are of the opinion that the Income Tax Appellate Tribunal was justified in cancelling the penalty u/s 271B. The penalty under section 271B cannot be considered to be leviable in every case. It appears ..... X X X X Extracts X X X X X X X X Extracts X X X X
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