TaxTMI 
TaxTMI 
1997 (11) TMI 62
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....ance of the assessee. The question of law referred to us for decision is as follows : "Whether, on the facts and in the circumstances of the case, the imposition of penalty of Rs. 40,162 under section 271B was justified ?" The assessment year in question is 1985-86. As per annexure-A order passed by the Income-tax Officer a penalty of Rs. 40,162 was imposed under section 271B of the Income-tax A....
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....alty is unsustainable. In this context, counsel submitted that section 271B was inserted by the Finance Act of 1984 with effect from April 1, 1985. He also pointed out section 44AB creating an obligation on the part of the assessee to get the accounts audited also came into force with effect from April 1, 1985. In other words, what is contended by the assessee is that the above provisions were not....
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....caused to the firm if such time was not granted. Of course, the assessee earlier submitted an application for extension of time for submitting the audited accounts. In the aforesaid circumstances, it cannot be said that there was a total defiance of law by the assessee in submitting the audited accounts. The assessee was submitting the explanation for its failure to submit the audited accounts as ....