provisions of section 271B

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Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2010 does the provisions of section 271B attract if we filed return after due date but we got the audit report before due date

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 January 2010 Yes yes yes

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 January 2010 If there is a reasonable cause,which the assessee has to prove, for the delay penalty will not be imposed. Refer section 273B.

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Ratan Sharma

Ratan Sharma (Expert)
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01 January 2010 No penalty imposable u/s. 271B if the audit report is obtained before due date.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 January 2010 Section 271B is reproduced below.
If any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or furnish a report of such audit as required under section 44AB, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of one hundred thousand rupees, whichever is less.
As per the section two conditions has to be satisfied simultaneously. 1) Assessee should get audit report before the specified date.2) Assessee should furnish the report before that date.
Here, first condition is satisfied but failed in second condition being belated filing of return. Hence ITO will initiate penalty proceedings under section 271B.

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2010 xxxx