- (1.) The Income Tax Appellate Tribunal, Allahabad has referred the following questions of law under Section 256(2) of the Income Tax Act, 1961 ('the Act'), for opinion to this Court,- Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in sustaining the order of the Commissioner (Appeals) deleting the penalty of Rs. 32,730 imposed under Section 271B of the Income Tax Act, 1961, by holding that no penalty under the said Section is exigible for failure to furnish the audit report under Section 44AB along with the return under Section 139(1) of the Income Tax Act, 1961
(2.) The reference relates to assessment year 1991-92. Briefly stated the facts giving rise to the present reference are as follows: The case required compulsory audit and the audit report was due to be obtained by the assessee on or before 31-10-1991. The audit report dated 25-10-1991 was, however, filed with the belated return on 2-12-1991.
(3.) Penalty of Rs. 32,730 was imposed by the assessing officer under Section 271B of the Income Tax Act, 1961, which was cancelled during first appeal.;