1999 (11) TMI 884

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....penalty u/s 27187. 2. Whether, on the facts and in the circumstances of the case the Tribunal is right in law in making a distinction between absolute default and mere delay in filling audit report before the specified dated, when in fact the penalty u/s 271B is leviable in the case of non-compliance with the provisions of Sec. 44AB?" 2. The facts of the case are that the turnover of the business of the assessee exceeded Rs. 40 lakhs year and hence, the assessee was under the obligation to get its accounts audited and to obtain to get its accounts audited and to obtain an audit report and thereafter to file the same along with the return or income, in accordance with the provisions of Sec.44AB. In ITRC 269/98, in place of the due date....

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....ct on any previous year or years relevant to an asst. Year or obtain a report of such auditor's verification u/s 44AB or furnish the said report along with the return of his income filed u/s 139(1) or along with the report on income furnished in response to a notice u/s 142(1) the Income Tax 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, etc. Section 273B has stipulated that no penalty shall be leviable on the person or the assessee, as the case may be, for any failure referred to in section 271B, if he proves that there was reasonable cause for the said failure. 4. It is not in dispute that the assessee has ....