25 September 2010
Dear Experts, 1)If a Tax audit client does not file his return before 30th september 2010 for the asst. year 2010-11 accounts, Is it mandatory for the A.O. to levy penalty of Rs. 1,00,000 for non filing of accounts within the due dt. In other words A.O. has no discretionary power in deciding whether the penalty can be levied or not? 2) A.O. has the right to decide the quantum of penalty amount less than 1 lakh.? 3) Pls. tell me the section on which penalty can be levied? With regards, Rajesh.
25 September 2010
Belated furnishing of tax audit report as per section 44AB attracts penalty under section 271B of the Income tax Act,1961. W.e.f 1/4/2011 the penalty amount is one hundred lakhs or 1/2 % of the sales,turnover or gross receipts which ever is less.However, if there is a reasonable cause of the delay an if it can be proved penalty can be waived under section 273B of the said act.
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