2008 (2) TMI 315

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....l, Delhi Bench 'H' Delhi (hereinafter referred to as 'the ITAT') for the Assessment Year 2004-05, whereby two appeals filed by the different assessees, in which the common question of law was involved, were disposed of. 2. The common issue involved in these appeals is relating to the penalty imposed under Section 271B of the Act for violation of the provisions of Section 44AB. 3. For the disposal of these appeals, we are taking the facts from In the present case, the respondent is a Co-operative Credit & Service Society (hereinafter referred to as 'the Society') registered under the Haryana Co-operative Societies Act, 1984 (hereinafter referred to as 'the Societies Act') and it is being governed by the provisions of the Societies Act.....

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....iety raised a contention that annual audit fee is being paid by the Society regularly, but since the accounts of the Society are not being carried out in time due to non-availability of sufficient number of auditors in Co-operative Department, which is not a fault of the Society, the Society can not be penalized for the fault of others. It was further contended that the Society has no control over the appointment of auditor by the Registrar, Co-operative Societies, therefore, the requirement of submitting the audit report within the stipulated period could not be complied with. 6. The Assessing Officer did not accept the explanation given by the Society and thus imposed a penalty of Rs.21,400/- on the Society under Section 271B of the Ac....