Penality U/s 271B
This query is : Resolved
31 December 2010
Audit U/s 44AB completed on 30.09.2008,ITR 5(Efilling)uploaded on 05.10.2008,AO imposing penality U/s 271B,is action of AO justified ?
CA Rajesh Gupta
CA Rajesh Gupta
31 December 2010
NO.
PRODUCE THE TAX AUDIT REPORT COPY.
CASE LAW
Income Tax - 2010 TMI - 35235 - HIGH COURT OF ALLAHABAD - Commissioner of Income Tax, Bareilly Vurses M/s. Shyam Agencies, Bareilly.
Penalty u s 271B – AO imosed the penalty but CIT(A) deleted the penalty imposed u s 271B of the I.T. Act, 1961, on the ground that (a) the audit report was obtained before the specified date, and (b) the penalty proceedings were initiated after several months of passing of assessment order – held that - for both the assessment years 1989-90 and 1990-91, the assessee has obtained the audit reports on 31.10.1989 and 30.11.1990 respectively
PRODUCE THE TAX AUDIT REPORT COPY.
CASE LAW
Income Tax - 2010 TMI - 35235 - HIGH COURT OF ALLAHABAD - Commissioner of Income Tax, Bareilly Vurses M/s. Shyam Agencies, Bareilly.
Penalty u s 271B – AO imosed the penalty but CIT(A) deleted the penalty imposed u s 271B of the I.T. Act, 1961, on the ground that (a) the audit report was obtained before the specified date, and (b) the penalty proceedings were initiated after several months of passing of assessment order – held that - for both the assessment years 1989-90 and 1990-91, the assessee has obtained the audit reports on 31.10.1989 and 30.11.1990 respectively
02 January 2011
Please refer circular No.3/2009 dated 21-5-2009. Relevant portion is extracted hereunder:-
7. Following clarifications are also issued in respect of certain issues arising from furnishing the returns in the above mentioned forms:
(i) An assessee should obtain the report of audit from an accountant under section 44AB of the Act on or before the due date of the furnishing of the return and should fill out the relevant columns of the return forms on the basis of such report. However, the report of audit should not be attached with the return or furnished separately any time before or after the due date. The assessee should retain the report with himself. If called for by any income-tax authority during any proceeding under the Act, it shall be incumbent upon the assessee to furnish/produce the same in original. No penalty under section 271B shall be initiated or levied for not furnishing the tax audit report on or before the due date. However, if the audit report has not been obtained before the due date, provisions of section 271B shall continue to be attracted.
7. Following clarifications are also issued in respect of certain issues arising from furnishing the returns in the above mentioned forms:
(i) An assessee should obtain the report of audit from an accountant under section 44AB of the Act on or before the due date of the furnishing of the return and should fill out the relevant columns of the return forms on the basis of such report. However, the report of audit should not be attached with the return or furnished separately any time before or after the due date. The assessee should retain the report with himself. If called for by any income-tax authority during any proceeding under the Act, it shall be incumbent upon the assessee to furnish/produce the same in original. No penalty under section 271B shall be initiated or levied for not furnishing the tax audit report on or before the due date. However, if the audit report has not been obtained before the due date, provisions of section 271B shall continue to be attracted.
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