Law:

Section:

Section 271B of Income-tax Act, 1961 - Penalty - For failure to get Accounts audited Where petitioner submitted that even though he had failed to enclose audit report at time of submitting his return before second respondent, he submitted audit report subsequently but second respondent instead of considering petitioner's claim, imposed penalty under section 271B, which was confirmed by first respondent Commissioner, penalty order was to be set aside and respondents directed to comply with provisions of section [A/Y : 2000-01] At the time of filing of the return before the second respondent, the petitioner did not enclose the audit report. It was stated that the petitioner was receiving income which was less than 8 per cent. The second respondent, on receipt of the return from the petitioner, passed an order, accepting the return and refunded a sum of Rs. 53,274. However, the second respondent suo motu took up revision and cancelled the earlier order dated 23-3-2004, passed by him. In the subsequent order passed by the second respondent, the petitioner was directed to pay a sum of Rs. 82,516. The first respondent-Commissioner confirmed the order passed by the second respondent. The petitioner submitted that even though he had failed to enclose the audit report at the time of submitting his return before the first respondent, he submitted the audit report subsequently before the second respondent but instead of considering the petitioner's claim, penalty under section 271B was imposed. Held that the order of penalty passed by the respondents was not legally sustainable, the order was to be quashed and a direction issued to the department to comply with the provisions of section 271B. K. Soundararajan for the Petitioner. N. Muralikumaran for the Respondent. JUDGMENT S.K. Krishnan, J. - By consent of both parties, the main writ petition itself is taken up for final disposal. The prayer in the writ petition is to call for the records of the first respondent in C. No. 7144/(35)/CIT-II/TRY/2004-05 dated August 16, 2005, and the connected proceedings of the second respondent in G. I. No. 319U/2000-01 dated March 23, 2004, and quash same as illegal, arbitrary and…

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