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TMI Blog2019 (2) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... t entries in the profit and loss account and balance sheet have not been audited. The entire basis and premise for making an adhoc addition gets vitiated in the light of the fact that audited accounts and the entire audit report was filed before the AO as well as before the CIT(A), which fact stands established by the Tribunal in the penalty proceedings u/s 271B. Apart from that, find that assessee has given the entire details relating to trading account and profit and loss account and balance sheet including details of opening stock, purchases and the sales made by the assessee before the CIT(A) which was also sent to the AO to submit his remand report. However, the AO in the remand report has not even commented upon these details. Onc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he return of income was filed on 30.09.2008, declaring income of ₹ 1,10,000/-. The assessing officer from the balance-sheet and Profit and Loss Account as on 31.3. 2018, noted that accounts are not audited even when the assessee s turnover was ₹ 78,62,773/- i.e., above the prescribed limit under section 44AB of the IT Act. According to him, since no explanation was offered by the assessee in response to the show cause notice, therefore, he initiated penalty proceedings under section 271B. He further noted that, during the course of assessment proceedings, assessee has failed to produce books of account and relevant vouchers in support of its claim for expenses and accordingly, he disallowed sum of rupees 1,00,000/- out of total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi with his son to settle at Ranchi. As specifically required by ld. CIT(A), assessee had filed confirmation from M/s. Jai Ambey Alloys (P) Ltd. along with bank statement. Regarding cash creditors also assessee pointed out that assessee was dealers in ferrous and nonferrous metal and some of the material and loan was taken for temporary period and was returned back in 2 months. Further, the entire stock was sold during the year as assessee had to wind up his business. In order to explain the trading account and profit, assessee has also filed the details from the trading account, like opening stock, purchases, sale, shortages, etc., alongwith the quantitative details which were as under: Opening Stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout even looking into the facts and material placed before him and also the copy of remand report submitted by the AO has dismissed the assessee's appeal in a very flimsy manner after observing and holding as under: The assessee filed Balance Sheet and P L a/c as on 31.3.08 which were not audited. Though the appellant was required by law to get its accounts audited u/s 44AB as the turnover of the appellant was ₹ 78,62,773/- i.e. above the limit Prescribed 44AB of the IT Act. The appellant has not offered any explanation for the same. The appellant has only contended that the action of the AO was ad hoc. The appellant has furnished some explanations, but the same are not satisfactorily explaining the business expenses nor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trongly relied upon the order of the assessing officer and ld. CIT(A). 6. I have considered the rival submissions and also perused the relevant finding given in the impugned order as well as material referred to at the time of hearing. The entire case of the Assessing Officer and the ld. CIT(A) is that no audited account or audit report has been furnished. From the perusal of the letter filed before the Assessing Officer, I find that assessee has filed the audit report in response to a notice issued by the Assessing Officer and said audit report is also appearing at pages 11 to 16 of the paper book, wherein auditors have duly certified the books of account and the trading result in Form 3CB. Not only that, a notice was also sent by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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