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TMI Blog2017 (9) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance claim made for loss of stock and other assets on account of flood on 30-06-2007. We find that the assessee claims to have maintained books of account, however those books of account were destroyed in flood because of which the assessee could not produce the books of account to the auditor to get its books of account audited u/s 44AB of the Act. In this case, the assessee has proved beyond doubt with necessary evidence that there was sufficient and reasonable cause for not getting its accounts audited u/s 44AB of the Act. Therefore, we are of the view that the AO was erred in imposing the penalty u/s 271B of the Act. The CIT(A), without appreciating the facts, simply upheld penalty levied by the AO. - Decided in favour of asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was a reasonable cause for not filing audit report as required u/s 44AB of the Income-tax Act, 1961 as its books of account and other relevant documents for the impugned assessment year were destroyed because of floods due to heavy rains on 30-06-2007. The assessee further submitted that since its books of account and other relevant documents are destroyed it could not produce books of account before the auditor for getting the accounts audited. Since there was a reasonable cause for not preparing the books of account audited due to floods, the assessee could not get its books of accounts audited for which no penalty can be levied u/s 271B of the Income-tax Act, 1961. The AO, after considering the relevant submissions of the assessee he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is bound to maintain books of account, once its gross receipts from the business exceeded prescribed limit provided u/s 44AB of the Income-tax Act, 1961. Since the assessee failed to get its accounts audited u/s 44AB, the AO has rightly levied penalty u/s 271B. Aggrieved by the order of CIT(A), the assessee is in appeal before us. 4. The Ld.AR for the assessee submitted that the Ld.CIT(A) erred in confirming the order of the AO levying penalty u/s 271B, though the assessee demonstrated with evidence that there was a reasonable cause for not getting the accounts audited u/s 44AB of the Income-tax Act, 1961. The Ld.AR further submitted that the CIT(A) ought to have appreciated that the assessee had a reasonable and sufficient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts with regard to applicability of the provisions of section 44AB of the Income-tax Act, 1961 is not in dispute. The assessee s turnover from its business for the relevant financial year has exceeded the prescribed limit provided for audit of its accounts u/s 44AB of the Act. But assessee claims that there is sufficient and reasonable cause for not getting its accounts audited as its books of account and other relevant documents were destroyed by natural calamity, i.e. flood on 30-06-2007 because of which it could not prepared its books of accounts to be produced to the auditor for audit of accounts. The assessee has furnished relevant documents in support of its claim that there was flood which destroyed its books of account. We fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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