2004 (5) TMI 266

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....t the common order of CIT(A), dt. 31st Dec., 1996, for different assessment years wherein penalty under s. 271B of the IT Act, 1961 (hereinafter referred to as 'the Act'), was levied. Identical issues are involved in all these appeals. So, for the sake of convenience, all these appeals are being disposed of by this common order. 2. At the time of hearing Shri D.R. Zala was present on behalf of ....

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....account were not audited. But, the case of the assessee is that penalty is not automatic under s. 271B of the Act for default under s. 44AB of the Act. The AO has discretion to levy or not to levy penalty under the circumstances of a given case. Further, where reasonable cause is made out from the facts on record, the AO, in appropriate cases, is under an statutory duty not to impose penalty. The ....

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....nal High Court in the case of CIT vs. Rawat Singh & Sons 1977 CTR (Raj) 248 : (1979) 120 ITR 65 (Raj), wherein it has been held as under: "An order imposing penalty for failure to carry out statutory obligation is the result of quasi-criminal proceedings and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct cont....