2003 (3) TMI 76

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....Tribunal was right in law in sustaining the penalty of rupees one lakh for each year after proper interpretation of section 271B read with section 273B of the Act?" The relevant assessment years are 1990-91 and 1991-92. The Assessing Officer has initiated proceedings for penalty for the assessment years 1987-88 to 1991-92. The turnover of the assessee was more than Rs. 40 lakhs. During these three years, the assessee was obliged to file report in Form No. 3CD along with audited balance-sheet, profit and loss account with the return as per the requirement of section 44AB of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), which came into effect from the assessment year 1985-86, which requires that each assessee whose turno....

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....Accountant General for audit for the subsequent year. Mr. R.B. Mathur, learned counsel appearing for the Revenue, submits that whether the assessee has a reasonable cause for not submitting the audit report for the years 1990-91 and 1991-92, the Tribunal has considered the explanation in para. No. 9 of its judgment and found that for both these assessment years, the assessee has no reasonable cause to file the audit report. Para. No. 9 of the Tribunal's judgment reads as under: "9. Now we will take up the penalty issue for the assessment years 1990-91 and 1991-92. We noted that the accounts for these two years were handed over to the Accountant- office on December 29, 1990, and March 3, 1992. In this way we noted that the accounts boo....

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....989-90 1990-91 1991-92 Specified date of audit 1-12-1989 31-12-1990     31-12-1991 Date on which annual accounts of the Board rendered to the AG office 23-10-1989 29-12-1990 03-03-1992 Date on which audit certificate issued by the AG 22-8-1990 5-12-1991   11-11-1992 Date on which tax audit report  received 28-8-1990 20-1-1992  26-11-1992 There is no dispute on the facts that the assessee got its accounts audited by the Accountant-General office for the three preceding years, Though the accounts were submitted before the due date but the accounts were not audited by the Accountant-General office before due date. For these three years, the Tribuna....