COMMISSIONER OF INCOME TAX Vs. CHEEMA FILLING STATION

JUDGEMENT

(1.) THIS order shall dispose of IT Appeal Nos. 454 and 455 of 2007. The Revenue has filed these appeals under s. 260A of and 95/Asr/2002 in case of the assessee for the asst. yr. 1996 -1997 by raising the following substantial question of law : "(i) Whether on the facts and in the circumstances of the case and in law, the order of the Tribunal deleting the penalty of Rs. 1,00,000 imposed under s. 271B of the Act for assessee's failure to get its books of account audited before the specified date and to furnish the same by the specified date as per s. 44AB of the Act was not perverse -

(2.) THE brief facts of the case are that the respondent/assessee is a firm running a petrol pump. No return of income was declaring loss of Rs. 371. The returned income was accepted under s. 143(1) of the IT Act. Since the total turnover exceeded Rs. 40 lacs, it was obligatory on the part of the assessee to get its books of account audited before the specified date and to furnish the same by the specified date in view of the provisions of s. 44AB of the IT Act. A show -

(3.) IN response to this notice, the assessee filed a written reply. In the reply, it was submitted by the assessee that the assessee firm though had not submitted its IT return due to some unavoidable circumstances but had got its accounts audited from the chartered accountant well in advance and also sent the audited report Under Postal Certificate (UPC) to assessee under s. 271B of the IT Act.