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TMI Blog2017 (6) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... explained the reasons for delay in audit of accounts which is clearly beyond the control of the assessee. Therefore, the delay cannot be attributable to the assessee. In view of the same, we set aside the order of the CIT (A) and remit the issue to the file of the AO with a direction to recompute the income of the assessee on the basis of the audited accounts of the assessee, if they are available now. Penalty levied u/s 271B - Held that:- We find that the assessee being a Govt. organization and a Registered Society, has to abide by the rules framed under the Societies Act. As per the said Act, the Auditors have to be appointed by the Registrar of Societies and therefore, is beyond the control of the assessee. We are satisfied that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is a company which is engaged in the business of processing and sale of milk and milk products. It filed its return of income for the A.Y 2004-05 on 20.10.2004 declaring a loss of ₹ 63,43,910. During the course of the assessment proceedings u/s 143(3) of the Act, the AO called for certain information. The assessee s representative appeared and filed the required information. The AO observed that the assessee company is mainly engaged in the activities of procurement of milk from farmers in Andhra Pradesh, process the same into whole milk, standardized milk, toned milk and milk products and sells them. For this purpose, the assessee maintains milk sheds and milk product factories all over the State of Andhra Pradesh. The AO observ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y audit for the next year could not be completed and that the statutory audits for the earlier years is also delayed considerably due to change in the system of accounting. The AO, thus explained the reason for the deficiency. The CIT (A) however, was not convinced with the assessee s contention and held that the assessee is required to file the return of income along with the audited report and the assessee being a State owned company, running with public fund should have been careful in running its business as well as in complying with the statutory provisions of various acts. Therefore, he was of the opinion that the return of income filed without the audit report is non-est. Accordingly, he dismissed the assessee s case. Aggrieved, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05-06 and 2011-12 are treated as allowed for statistical purposes. ITA No.743/Hyd/2015 9. This appeal is against the order of the CIT (A)-VII dated 21.4.2015 confirming the penalty levied by the AO u/s 271B of the Act. 10. Brief facts of the case are that the assessee filed the return of income on the basis of the provisional accounts audited by a Chartered Accountant but did not file the audited accounts. The AO, therefore, issued a notice u/s 271D for levy of penalty for non filing of the audit report. The assessee explained that the audit report could not be filed within the time as the delay took place because the appointment of the Auditors was to be made by the Registrar of the Societies and thus beyond the control of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. account. To verify this aspect, the assessment was reopened by issuance of a notice u/s 148 of the Act. The assessee filed the details called for. The AO observed that the assessee has debited the interest as paid to the govt. on loans taken and in the earlier years, the AO had disallowed the same u/s 43B of the Act. He accordingly disallowed the same in these A.Ys as well. Aggrieved, the assessee preferred appeals before the CIT (A), who granted relief to the assessee against which the Revenue is in appeal before us. 15. The learned DR relied upon the order of the AO, while the learned Counsel for the assessee supported the order of the CIT (A) and reiterated the submissions made before the authorities below. 16. Having regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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