Penalty u/s 271B

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An assessee got his accounts audited u/s44AF of the Income Tax Act, 1961 for assessment year 2007-2008 but could not file the income tax return.Whether penalty u/s 271B of the Act can be levied by tho ITO ?

AI Summary

Debate on Imposing Penalty Under Section 271B for Non-Filing of Returns Despite Audit Under Section 44AF An assessee had their accounts audited under section 44AF of the Income Tax Act, 1961, for the assessment year 2007-2008 but failed to file the income tax return. The query raised was whether a penalty under section 271B could be levied by the Income Tax Officer. A respondent clarified that the penalty under section 271B applies only for failure to get accounts audited under section 44AB. Since section 44AF refers to section 44AB, the issue is considered debatable, and there may be a possibility to avoid the penalty at a higher level.