9911796707
TMI Blog2021 (6) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... le to provide reasonable cause for the delay. In the instant case, from the above narration of facts, that led to delay in finalization of statutory audit and tax audit as detailed hereinabove, we find that assessee had indeed sufficient and reasonable cause within the meaning of section 273B of the Act and hence, could not be invited with the levy of penalty under section 271B. Income declared by the assessee in the revised computation of income in the sum has been indeed accepted by the AO in the scrutiny assessment, which proves that all the necessary details were indeed made available by the assessee before the completion of assessment proceedings to the satisfaction of the learned Assessing Officer, together with the tax audit report a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee also filed revised computation of total income at ₹ 5,23,02,541/-, as revised return could not be filed by the assessee in view of the fact that the original return was filed belatedly by the assessee. During the assessment proceedings, all the details called for by the learned AO were indeed submitted by the assessee with supporting evidence. In fact, reference was made to learned Transfer Pricing Officer (in short TPO) u/s 92CA(1) of the Act and the learned TPO vide his order u/s 92CA(3) of the Act dated 30.06.2016 had accepted the value of Specified Domestic Transactions of the assessee with its associated enterprises to be at arm's length price. The assessment was completed u/s 143(3) of the Act on 09.12.2016 determining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was informed by the auditors that domestic transfer pricing provisions are applicable to the assessee company on account of recent amendment made in the Finance Act, 2012. On seeing the intrinsic and complexities of domestic transfer pricing audit and incompetency of Ms. Dharmista Parma that she could not handle the same effectively, in October 2012, the assessee appointed another senior accountant Mr. Kishore Mehta, aged 53 years, having experience of more than 25 years in the field of accountancy in auditing and taxation and also brings along with him huge corporate working experience in large entities. Accordingly, he was appointed and assigned the task of finalizing the books of account, looking after statutory audit under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evied. The aforesaid explanation did not find favour with the learned CIT(A), aggrieved by which, the assessee is in appeal before us. 5. We find that assessee had sought to explain the genuine difficulty it has faced in finalizing the accounts without which the statutory audit under Companies Act and Tax audit under Income Tax Act could not be completed. The levy of penalty contemplated under section 271B of the Act is not automatic and the same shall not be levied if the assessee was able to provide reasonable cause for the delay. In the instant case, from the above narration of facts, that led to delay in finalization of statutory audit and tax audit as detailed hereinabove, we find that assessee had indeed sufficient and reasonable cau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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