2010 (1) TMI 801

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....ssee has filed this appeal challenging the impugned order of the Ld CIT(A)-XVIII, Mumbai dated 7.11.2008 for the A.Y. 2005-06.   2. The only issue before us is whether the A.O. is justified to levy the penalty of Rs. 30,912/- u/s. 271B for the violation of Sec. 44AB of the Act.   3. The fact which reveal from the record are as under:-   The assessee filed the return of inco....

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....king the explanation of the assessee why the penalty should not be levied u/s. 271B of the I.T. Act. The assessee filed the reply dt. 7.4.2007 to the A.O. In the reply, it was contended by the assessee that due to the heavy raining, there was floods in Mumbai on 26th July 2005 and the books of accounts and all the relevant documents like purchase bills etc., were damaged and due to that the assess....

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...., (Supra), the Hon'ble Supreme Court has held as under:-   "An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceeding, and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty to conduct contumacious or dishonest, or acted in conscious disregard of its obligati....