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TMI Blog2019 (1) TMI 1335X X X X Extracts X X X X X X X X Extracts X X X X ..... 000? 3. The brief facts of the case are as follows:- The assessee is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. It is engaged in the business of banking. For the assessment year 2014-2015, the return of income was filed on 15.01.2016 declaring Nil income after claiming deduction u/s 80P(2)(a)(i) of the I.T.Act amounting to Rs. 3,44,41,274. The assessment u/s 143(3) of the I.T.Act was completed vide order dated 06.12.2016. During the course of assessment proceedings it was noticed that the assessee has not filed the Audit Report as mandated u/s 44AB of the I.T.Act. Therefore, penalty notice was issued u/s 274 r.w.s. 271B of the I.T.Act (Notice dated 06.12.2016). There was no respons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the grounds of appeal and the arguments of the Appellant have been considered. It is not the case of the Appellant that it is not covered by the provisions of section 44AB of the Act. It is also a fact that the Appellant has failed to comply with the provisions of section 44AB of the Act. As per section 271 B of the Act, penalty is leviable on failure to get account audited or furnish the report before the specified date under section 44AB i.e. due date for filing return of income u/s 139(1) of Income Tax Act, 1961. However, levy of such penalty is subject to the provisions of section 273B of Income Tax Act, 1961 and as per this section, it is for the Appellant to prove that there was reasonable cause for failure to get the account audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied date, which is 30th day of December, immediately following the financial year, i.e. 30.09.2014. However, for the relevant assessment year the Central Board of Direct Taxes vide its order dated 20.08.2014 had extended the due date of filing of the audit report from 30.09.2014 to 30.11.2014. The assessee had not filed the audit report in this case. The assessee was very casual and did not enter appearance for the show cause notice issued for imposition of penalty. The assessee has not made out a reasonable cause as mentioned u/s 273B of the I.T.Act for non-furnishing of audit report u/s 44AB of the I.T.Act. Hence, we are of the view that the penalty u/s 271B of the I.T.Act has been rightly imposed. It is ordered accordingly. 7. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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