2013 (5) TMI 999 - AT - Income Tax

Penalty upheld for failure to file audit report under IT Act

The Tribunal upheld the penalty imposed under section 271B of the IT Act on the assessee for failure to file the audit report under section 44AB, as ... - Issues Involved: Appeal against levy of penalty u/s 271B of the IT Act for failure to file audit report u/s 44AB.Issue 1: Levy of Penalty u/s 271BThe AO imposed a penalty of &8377; 37,080 on the assessee for not filing the audit report u/s 44AB along with the income tax return, as required due to the assessee's income exceeding &8377; 10 lakhs. The ld. CIT(A) confirmed this penalty, citing a previous Tribunal order. The Tribunal noted that the assessee, a partner in a Chartered Accountant firm, received income assessable under section 28(v) as profits from business or profession. As the receipts exceeded &8377; 10 lakhs, audit report submission was mandatory u/s 44AB, which the assessee failed to comply with. Referring to a similar case, the Tribunal upheld the penalty, emphasizing the professional nature of the income and the requirement for audit under section 44AB.Conclusion:The Tribunal upheld the penalty imposed u/s 271B, as the assessee's professional receipts required audit under section 44AB, which was not done. The appeal was dismissed, affirming the decision of the ld. CIT(A) and emphasizing the necessity of compliance with audit requirements for professional income exceeding the specified threshold.