9911796707
TMI Blog1987 (9) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... nil income was filed on12-9-1983. Notice u/s 143(2) was issued in response to which Sh. P. K. Sunderka, CA appeared from time to time. Case was discussed. On perusal of the return it was noticed that the assessee did not file with the return the audited copies of accounts and an audit report in Form No. 10B prescribed under Rule 17B of the IT Rules, 1962. Since the non filing of the said documents with the return amounted to the violation of the provisions of section 12A (b) the counsel of the assessee was required to explain as to why the benefit of secs. 11 and 12 should not be disallowed to the assessee on account of the said statutory lapse. In response to this the counsel of the assessee explained that the books of the assessee were a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed any specified time limit for compliance of these provisions. The only requirement under the section is that the return should be accompanied by audited copies of statements of accounts and an audit report in Form No. 10B. In other words only requirement of law under this section is that on the date of filing of the return the assessee must have the audited books of accounts. If the assessee had the audited copies of the books of accounts on the date of filing of the return and if per chance he forgets to file the audited copies of statements of accounts and Form No. 10B along with its return of income the law can permit him to file the said documents during the course of asstt. proceedings also. The law contained in section 12A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the ITO, which has been reiterated before us by the learned departmental representative. The learned D. R. also relied upon the ratio of the decision of Delhi High Court in O. P. Malhotra v. CIT [1981] 129 ITR 379, at pages 383 to 385 and further contended that original return of income, filed by the assessee, being not u/s 139(1) of the Act, the assessee had no right to revise the return u/s 139(5). Section 139(4A) of the Act is also pressed into service on behalf of the Revenue, along with the ratio of the decision of the Hon'ble Supreme Court as stands reported in 18 ITR 274 (sic). The learned departmental representative further contended that audit report was not in existence when the assessee filed the original return of income, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also held that, "The law contained in section 12A (b) appears to be of procedural nature but the penalty prescribed for its infringement speaks volumes about the intention of the Legislature in laying down these provisions." 7. Being that, what is the second of the Revenue at the assessment stage, then any non-compliance of procedure will result in an irregularity and certainly not an illegality. Non-compliance and non-furnishing of statutory audit report in statutory Form No. 10B along with the return of income filed, can, at best be said to be a procedural irregularity, which the assessee had made good before the assessment stood finalised as is evident from the observations of the ITO himself, when he says, "at best these documents c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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