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Audit Case

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This query is : Resolved

Vivek Banginwar (Querist)

19 May 2009 One assessee having turnover of more than 40 Lakhs didnot audited his account, filled IT Return for A.Y.2005-06 on 30th July 2005.The return was processed u/s. 143(1) on 10 April 2006.Show cause notice u/s 274 r.w. Sec. 271B was issued by ACIT on 15June 2006. ACIT passed penalty order on 30Jan.2007.
Whether penalty order is passed within limitation u/s.275?, If assessee does not maintain books of account,then what will happen?, What other way you suggest?..

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

19 May 2009 Penalty order is with in time prescribed u/s 275. If assessee doesn't maintain books of accounts penalty u/s 271A will sustain and 271B penalty will not withstand.

Citation:-CIT Vs. Bisauli Tractors (2008)299 ITR 219(All)

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