CHANDRA KUMAR SETH Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This is an appeal filed by the assessee against an order of the CIT(A) confirming imposition of a penalty of Rs. 25,324 under s. 271B of the Act for delay in obtaining and filing an audit report under s. 44AB of the Act.

(2.) The relevant facts are that the turnover exceeded Rs. 40 lacs and, therefore, the accounts were required to be audited under s. 44AB of the Act before the specified date and report obtained by that date. The specified date for the relevant year was 31st July, 1988 and audit report dt. 31st July, 1988 was obtained, but it was filed along with the return of income on 31st August, 1989.

(3.) There was no compliance to a notice to show cause why penalty should not be imposed under s. 271B of the Act. The AO, therefore, held that a default had been committed and imposed a penalty of Rs. 25,324.