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Section 271B of the Income-tax Act, 1961 - Penalty - For failure to get accounts audited - Assessment year 1994-95 Position prior to 1-7-1995 In view of the decision in CIT v. Apex Laboratories (P.) Ltd. [2006] 284 ITR 364 (Mad.), where the accounts were audited and also the assessee got the audit report, but the same was filed along with the return which was filed belatedly, penalty could not be imposed under section 271B [In favour of assessee]. J. Narayanasamy for the Appellant. JUDGMENT K. Raviraja Pandian, J.-The correctness of the order of the Income-tax Appellate Tribunal dated February 10, 2005, I. T. A. No. 880/Mds/1999 is put in issue by formulating the following questions of law : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that no penalty is imposable under section 271B for non-compliance with the provisions of section 44AB on the ground that the returns were filed belatedly neither under section 139 nor on a notice under section 142 of the Act ? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in deleting the penalty without giving a finding of fact as to whether the tax audit report had been obtained within the prescribed time by the assessee ?" 2. The relevant assessment year is 1994-95. Learned standing counsel appearing for the Revenue fairly submitted that the assessee's own case involving similar questions of law for the assessment year 1993-94 has been decided against the Revenue in CIT v. Apex Laboratories (P.) Ltd. [2006] 284 ITR 364 (Mad) (T. C. (A) No. 1565 of 2005), wherein by a dated January 24, 2006, a Division Bench of this court has dismissed the appeal filed by the Revenue by observing thus (page 366) : "We heard the learned standing counsel appearing for the Revenue, who submitted that there cannot be a situation where a person files his appeal on time, but does not file his audit report on time, should be in a worse s'tuation than a person who files both belatedly. She further submitted that the Tribunal ought to have…

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