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TMI Blog1993 (2) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... of the return. 9-11-1989 24-12-1990 It is common ground that the audit report under section 44AB of the Act was appended to each of the two returns referred to above. 3. As the returns in question were filed beyond the time allowed under section 139(1) of the Income-tax Act, 1961, the Assessing Officer took the line that the audit reports in question could not be said to have been filed " along with the return of his (assessee's) filed under sub-section (1) of section 139 " as stipulated by and under section 271B of the Act. Further, no notice under section 142(1) of the Act was issued in this case for both the assessment years and consequently the audit reports in question would not also be regarded as having been filed " along with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 139(1) and that, consequently, there was no question of treating them as returns filed under that section. It should, therefore, follow that the assessee has rendered himself liable to penalty under section 271B of the Act. In this regard he referred to and relied upon the following cases : (i) Brij Mohan v. CIT [1979] 120 ITR 1 (SC), (ii) Metal India Products v. CIT [1978] 113 ITR 830 (All.) (FB), (iii) CIT v. Shah Bros. [1988] 171 ITR 19 (Raj.), (iv) Reserve Bank of India v. Peerless General Finance Investment Co. Ltd. Judgments Today --- [1987] (1) SC 246, and (v) Keshavji Ravji Co. v. CIT [1990] 49 Taxman 87 (SC). It is in these circumstances that the assessee is now before us. 7. Shri Devaraj, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 271B of the Act. In other words, the belated returns might be valid under section 139(4) of the Act, but that would not mean that the assessee had filed the audited reports along with the returns under section 139(1) of the Act, He, therefore, urged that the impugned order of the Commissioner (Appeals) did not invite any interference. 9. We have looked into the facts of the case. We have considered the rival submissions. 10. At the outset, we may point out that, in matters relating to interpretation of statutes, the overdoing of literal interpretation of a section results in the undoing of the purpose or spirit of the section. We opt for the purposive approach to statutory interpretation which was adopted and advocated by Lord D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cers thus saved could be utilised for attending to more important investigational aspects of a case. " Given the aforesaid authoritative definition of the purpose behind the said sections, one could normally see some justification if penalty under section 271B is levied in situation Nos. (a) (b) supra. But the assessee's case is not covered by the said two situations. Here the assessee got the accounts audited and also obtained audit report. He also appended the audit reports to the returns filed by him for the assessment years 1989-90 and 1990-91.True, the returns were filed a few days after the stipulated due date for filing the returns. The question that arises for consideration is whether in such circumstances penalty under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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