- (1.) THE Tribunal, Allahabad, has referred the following question of law under s. 256(1), (2) of the IT Act, 1961, hereinafter referred to as "the Act" for opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in cancelling the penalty of Rs. 59,126, Rs. 78,376 and Rs. 82,633 for the asst. yrs. 1990 -91, 1991 -92, 1992 -93, respectively, by holding that no penalty under the said section is exigible for failure to furnish the audit report along with the return under s. 139(1) of the same is furnished along with the return filed by the assessee under s. 139(4) of the IT Act, 1961 -
(2.) THE reference relates to the asst. yrs. 1990 -91 to 1992 -93. Briefly stated the facts giving rise to the following facts are as follows :
(3.) IN the above assessment years, the assessee had turnover exceeding Rs. 40 lakhs. Therefore, it was obliged to get its accounts audited, obtain audit reports under s. 44AB and file the same along with its return of income under s. 139(1) of the IT Act, 1961. The assessee, however, filed the audit report along with its return furnished under s. 139(4). The relevant particulars are as under : Asst. Due date Audit report Return of Audit report yrs. for under s. income under under s. obtaining 44AB s. 139(1) due 44AB filed audit report obtained on on along with under s. return under 44AB s. 139(4) on 1990 - 30 -11 -1990 22 -10 -1990 30 -11 -1990 24 -04 -1991 91 1991 - 31 -10 -1991 31 -10 -1991 31 -10 -1991 02 -12 -1991 92 1992 - 31 -10 -1992 29 -10 -1992 31 -10 -1992 31 -12 -1992 93 For the default on the part of the assessee of not furnishing audit report along with the return under s. 139(1), the AO initiated penalty proceedings under s. 271B.;