The AO levied the penalty for failure to furnish audit report on legal representative. CIT(A) affirmed the order of the AO.\u00a0 On appeal the Tribunal\u00a0 held that \u00a0words any sum referred in sub-S. (1) of S. 159 have been substituted in place of words any tax which occurred\u00a0 under section i \u00a024B of the IT Act, 1922 so as to cover not only tax payable but also any penalty or interest. Therefore, legal representatives of the deceased are also liable to pay penalty on behalf of the deceased assessee pursuant to the provisions of S. 159(1). However, sub-S. (4) of S. 159 only empowers recovery of the tax liability to the extent of estate of deceased assessee succeeded by Legal Representative.\u00a0 \u00a0Penalty is different and distinct in nature than tax, penalty proceedings abate on the death of the assessee. If recovery of penalty is permitted against the estate of deceased, then it would clearly lead to permitting the enforcement of crime against the right of Legal heir\u00a0 in the succeeded estate. Accordingly\u00a0 penalty under S. 271B is not sustainable and cannot be recovered from the Legal heir \u00a0upon the death of the assessee. Penalty is deleted,\u00a0 Referred Bhuban Mohan Mitter Charitable Trust v. ITO (1993) 45 ITD 617 (Cal)(Trib)\u00a0 Bhagwansingh Shriramsingh L\/H Dinesh Bhagwan Singh v. ITO (2006) 9 SOT 73 (Mum) (Trib )\u00a0 Taraknath Gayen & Ors. v. CEGAT (1987) 31 ELT 631 (Cal)(HC),Omwati v. UOI \u00a0(2000) 125 ELT 136 (All)(HC). \u00a0(AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271B : Penalty-Failure to get accounts audited-Legal representatives-Death of assessee-Penalty is not leviable on legal representative-Penalty is deleted.[S.44AB, 159(1), 159(4), 274(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-53660","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dXu","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/53660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=53660"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/53660\/revisions"}],"predecessor-version":[{"id":53661,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/53660\/revisions\/53661"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=53660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=53660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=53660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}