Harshvardhan v. DCIT - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 0855 (Bang-Trib) : (2020) 206 TTJ 0894

INCOME TAX ACT, 1961

Section 271B

Since no format of books of account were prescribed under the Rules for Civil Contracts, penalty under section 271A could not be levied and when no penalty under section 271A was leviable, penalty under section 271B also could not be levied for non-audit as prescribed under section 44AB.

Penalty under section 271B - Leviability - Tax Audit Report not filed by civil contractor - No format of books prescribed

Assessee, a civil contractor did not furnish Tax Audit Report for the concerned years as required under section 44AB. Accordingly, AO levied penalty under section 271B. Held: Since no format of books of account were prescribed under the Rules for Civil Contracts, penalty under section 271A could not be levied and when no penalty under section 271A was leviable, penalty under section 271B also could not be levied for non-audit as prescribed under section 44AB.

Applied: CIT v. Babu Reddy (2010) 38 DTR 147 (Karn) : 2010 TaxPub(DT) 1607 (Karn-HC)

REFERRED :

FAVOUR : in assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 271(1)(c)