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TMI Blog2016 (9) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... no books of accounts, which could be produced before Chartered Accountants for getting them audited. Therefore, the contention of the AO is misplaced. Further, the ld. Authorized Representative of the assessee has relied in the case of ITO vs. Gayatri Coal Supply Company (1997 (6) TMI 76 - ITAT PATNA ), wherein it was held that the illness of Chartered Accountant constituted a reasonable cause and hence penalty u/s 271B could not be levied, whereas in the instant case, the assessee was himself ill due to which he could not maintain essential books, hence same constitutes a reasonable cause. Penalty deleted - Decided in favour of assessee. - I.T.A. No. 84/Ind/2016 - - - Dated:- 26-7-2016 - SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of Section 44AB of the Income-tax Act, 1961. In view of these facts, the AO issued show cause notice u/s 271B asking the assessee as to why the penalty u/s 271B should not be levied. In response to this, it was submitted by the assessee that the non-compliance of Section 44AB of the Act, was not intentional, but due to the reason that health condition of the assessee got critical during the year and he had to get urgently admitted in the hospital for medical treatment. However, the AO did not satisfy with the explanation and observed that the medical report for the treatment in the CHL Apollo Hospital as filed by the assessee are dated 28.02.2009 to 06.03.2009, which was not relevant for the assessment year 2010-11. Further, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentative of the assessee contended that the assessee has got his books of accounts duly audited in the previous year, which proves that he was not negligent and was conscious to abide by the rules. The AO and ld. CIT(A) has misunderstood the facts. The contention of the AO that the assessee has personally attended the assessment proceedings for assessment year 2007-08 on 11.06.2010 and 22.06.2010 and, therefore, he was well enough to get his books of accounts audited is not showing correct view as the books of accounts for the assessment year 2010-11 were from 01.04.2009 to 31.03.2010 and almost during the whole year, the assessee could not maintain proper books of accounts and, therefore, could not get them duly audited. The ld. Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended that in the decision of ITO vs. Gayatri Coal Supply Company (supra), it was held that even illness of Chartered Accountant constitutes a reasonable cause, hence, penalty u/s 271B could not be levied. 8. On the other hand, the ld. Sr. Departmental Representative submitted that the assessee has not maintained proper books of accounts nor any audit for the year was got done. The ld. Sr. Departmental Representative further submitted that as per case law relied by ld. Authorized Representative of the assessee the illness of Chartered Accountant could be considered as reasonable cause for not getting the books of accounts audited, whereas in the instant case, the assessee was ill, hence, revision is not applicable. Therefore, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to the illness of the assessee, he could not maintain proper books of accounts for the financial year 2009-10 relevant to assessment year 2010-11, which are essential for audit u/s 44AB of the Act. Therefore, the question that the books of accounts could be audited during the period in which the assessee attended personally before him cannot be said as irrelevant. Because the essential books of accounts required for audit could not be maintained due to illness of the assessee, hence there was no books of accounts, which could be produced before Chartered Accountants for getting them audited. Therefore, the contention of the AO is misplaced. Further, the ld. Authorized Representative of the assessee has relied in the case of ITO vs. Gayat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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