Penalty of Rs. 150,000 for not filing audit report on time set aside as no prior approval obtained. Appeal allowed.

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....The ITAT, an Appellate Tribunal, considered the issue of levy of penalty u/s 271B for failure to submit audit report u/s 44AB on time. The Tribunal noted that the penalty order did not mention prior approval of the Joint Commissioner, as required. Citing SAGAR DUTTA case, it held that the absence of such approval renders the order incompetent and a nullity. The Tribunal set aside the penalty orders totaling Rs. 150,000, stating they were passed without requisite approval. The appeal by the assessee was allowed, with the option for the revenue to approach the Tribunal if prior approval was later proven.....