2005 (12) TMI 201

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rder of the CIT(A)-II, Surat, for the asst. yr. 2001-02. 2. The only ground raised in this appeal by the assessee is against the levy of penalty of Rs. 52,505 under s. 271B of the IT Act, 1961. 3. At the time of hearing before us, it is submitted by the learned counsel that the assessee is a contractor who is disclosing its income as per s. 44AD of the IT Act, 1961. For the year under consid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he counsel of the assessee omitted to furnish the audited accounts because the income was returned on the basis of s. 44AD. He, therefore, stated that since there was reasonable cause for assessee's failure to furnish the audited statements, the penalty levied under s. 271B may be deleted. 4. The learned Departmental Representative, on the other hand, relied upon the orders of the authorities b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... also accepted the income on the basis of s. 44AD and has not worked out the same on the basis of audited accounts. In the above circumstances, the assessee's counsel remained under the bona fide impression that since the income is being disclosed under s. 44AD, the audited account is not required to be furnished. In our opinion, the assessee cannot be penalized under s. 271B. The above bona fide ....