9911796707
TMI Blog2000 (4) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO initiated penalty proceedings under s. 271B of the Act. A notice under s. 274 r/w s. 271B was issued to the assessee to show cause as to why penalty under s. 271B of the Act should not be imposed for the default committed by it. In response to the said notice, the assessee filed its letter dt. 6th Sept., 1994, stating that in the case of the assessee, no penalty under s. 271B was leviable. It was also contended that the assessee had audited its accounts and obtained the report within the specified time as per the provisions of s. 44AB of the Act. It was also contended that the assessee had not filed the return of income under s. 139(1) of the Act or in response to notice under s. 142(1)(i) of the Act and, therefore, no penalty under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been specifically stated by Shri Jagjiwan Lal, C.A., that "The audit report was handed over to the party on 30th Oct., 1992, i.e., Shri Jagtar Singh at Moga". He further stated that he had received Rs. 2,000 towards the audit fees on the same date. The learned counsel for the assessee further submitted that as per the provisions of s. 44AB. The only requirement was to get the accounts audited within the time. Since the assessee duly complied with this requirement, penalty under s. 271B of the Act was not leviable. However, it was also submitted that the return of income was filed under s. 139(4) of the Act along with the audit report dt. 30th Oct., 1992, and, therefore, in view of the decision of the Hon'ble Punjab Haryana High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sadhu Singh, B.P. However, I remember that the books were received for audit after 16th Oct., 1992 to 29th Oct., 1992, because I shifted my office from Moga Mandi to Rly. Road on 16th Oct., 1992. "Cash book, ledger and journal. No. receipt register or dispatch register is maintained by me. Q. When the report was handed over by you to the assessee and when you received the audit fee? A. The Audit report was handed over to the party on 30th Oct., 1992, i.e., Shri Jagtar Singh at Moga. The audit fee of Rs. 2,000 was received by on the same date which is duly entered in cash book p. 16, dt. 30th Oct., 1992 (in the name of Sadhu Singh Jagtar Singh). No receipt book is maintained but it is given on the letter pad itself. Q. What book of a/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the specified date. Furthermore, it is an admitted fact that no return has been filed either under s. 139(1) of the Act or in response to any notice under s. 142(1)(i) of the Act and as such there could possibly be no penalty for not furnishing the audit report along with such a non-existent return. It is also relevant to point out that prior to the amendment of s. 44AB by the Finance Act, 1995, w.e.f. 1st July, 1995, there was no requirement to submit the audit report before the specified date and, therefore, the authorities below were also not justified in holding that the assessee failed to submit the audit report immediately after obtaining the same. In our opinion, the decision of the Hon'ble Punjab Haryana High Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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