2010 (1) TMI 25

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....initiated after several months of passing of assessment order." The brief facts of the case are as follows: In terms of section 44AB of the I.T. Act, the assessee was required to get its accounts audited and to obtain the audit reports for the assessment years 1989-90 and 1990-91 on 31.10.1989 and 30.11.1990 respectively. The audit reports for the aforesaid assessment years though obtained before the specified dates, on 25.10.1989 and 30.10.1990, were filed along with the belated returns furnished on 31.1.1990 and 15.4.1991 respectively. Rejecting the plea of the assessee that in the circumstances of the case, no penalty was exigible, vide his orders dated 20.1.1993, the A.O. imposed penalty of Rs. 43,200/- and Rs. 51,270/- u/s 271B of th....

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....rther, after referring to and extracting the finding of a decision of the ITAT in the case of H. Ajitbhai reported in 45 ITD 262 it was held that since penalty proceedings for both the years were initiated by issue of notices after several months of passing of assessment order, the penalties were rightly cancelled by the CIT(A) on this ground also. In this view of the matter, the Tribunal did not consider it necessary to go into the question of existence or absence of reasonable cause for the default. Vide order dated 16.3.1998, the Revenue's appeals were dismissed. Heard Sri A.N. Mahajan, learned Standing Counsel. He has submitted that the question involved is squarely covered by the decision of this Court in the case of Commissioner of I....

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....et the accounts audited before the specified date. There was no obligation to furnish that audit report before the Assessing Officer before the specified date. This obligation has been created by substituting the words "furnished by" for the words "obtain before" by the Finance Act, 1995, with effect from July 1, 1995. Thus, prior to the amendment the obligation of an assessee to whom under section 44AB applied was merely to get the accounts audited and obtain an audit report before the specified date. There is no dispute that in the present case the assessee complied with these requirements. The contention of the Commissioner that if the report has not been filed before the Assessing Officer before the specified date, the assessee becomes ....