- (1.) The Court--Both these two appeals were taken up together because the common questions of law have arisen in these two appeals.
(2.) The appellant, Amal Ganguly, was served with a notice to show cause why penalty under section 271B shall not be imposed upon him. To be precise the relevant portion of the show cause notice reads as follows:-- "Assessee filed I.T. Return on 4-3-2004 declaring a total income of 2,95,51,989. Assessment under section 143(3) and assessed income is Rs. 2,95,56,860. Scrutiny of records revealed that the total income of the assessee had included on income from profession to the tune of Rs. 1,17,43,893. This income comprised of the followings : JUDGEMENT_163_LAWS(CAL)2_2014.htm
(3.) An identical notice was issued to the appellant, Sagar Dutta, which reads as follows:-- "On a perusal of your return of income it appears that you derived income under the head Profit and gains of business or profession and the sums exceeded ten lakh rupees. As a person carrying on a profession where gross receipts exceeded ten lakh rupees your accounts was required to be audited in terms of provision of section 44AB of the Income Tax Act 61. Failure to have got your accounts audited and furnished the same before the due date of filing of return in the prescribed manner attracts penalty under section 271B of the Income Tax Act 61.";