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TMI Blog2022 (3) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts was due to non-finalisation of accounts, because all the books of accounts and other relevant materials were seized by the Investigation Wing of the department, and they were not made available to the assessee. The assessee has filed his return of income on the basis of provisional accounts, and such return was accepted by the department. These facts were not denied by the Revenue and attained finality. AO has simply invoked his discretionary power under section 271B without appreciating the reasons putforth by the assessee for the alleged failure on his part for non-submission of audited accounts - explanation offered by the assessee ought to have been accepted by the Revenue as being sufficient cause. - Decided in favour of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose) of ₹ 68,390/-. Thereafter, notices under sections 143(2) and 142(1) of the Act were issued and served upon the assessee, and the same were replied by the assessee, and based on that assessment order passed under section 143(3) of the Act on 20.3.2015. The returned income at ₹ 1,24,46,720/- was accepted by the department inclusive of additional income of ₹ 94,40,275/- offered by the assessee during the course of search proceedings. After finalization of the assessment, the ld.AO has also issued penalty notice under section 271AAB and 271B read with section 274 of the Act. During the assessment proceedings, the ld.AO noticed that the assessee in his return of income filed in response to notice under section 153A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmed levy of penalty by rejecting the explanation offered by the assessee. Aggrieved against the same, the assessee is in appeal before the Tribunal with the following grounds: 1.00 IMPOSITION OF PENLATY TO THE TUNE OF ₹ 54,106/- FOR NOT FURNISHING TAX AUDIT REPORT U/S 44AB OF THE ACT. 1.1 On the facts and circumstances of appellant's case and in law, the Id. CIT (Appeals) has erred in confirming the levy of penalty to the tune of ₹ 54.106/- under section 271 B of the Act by the Id. AO for not furnishing tax audit report u/s 44AB of the Act. While doing so, the Id AO has erred in not appreciating the fact that due to search operations in the Group cases during the financial year, it was humanly not possible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of section 44AB of the Act. Even otherwise also, there is reason for the assessee not to get accounts audited as per section 44AB, because all the books of accounts and other relevant materials were with the Investigation Team, and they were not made available to the assessee. Therefore penalty under section 271B of the Act is unjustified and unwarranted, and the same is liable to be deleted. 6. On the other hand, the ld.DR while justifying imposition of penalty under section 271B of the Act supported the orders of the lower authorities. 7. We have given our thoughtful consideration in the matter and perused material available on record including the written submissions. Admittedly, during the search and seizure operation, the dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Section 92E that the report from an Accountant be filed in regard to the international transactions or specified domestic transactions. The relevant provision reads as under : Report from an accountant to be furnished by persons entering into international transaction.- 92E. Every person who has entered into an international transaction [or specified domestic transaction] during a previous year shall obtain a report from an accountant and furnish such report on or before the specified date in the prescribed form duly signed and verified in the prescribed manner by such accountant and setting forth such particulars as may be prescribed. 7.1 In order to ensure compliance, the Statute has provided imposition of penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, it is seen that the consistent explanation of the assessee has been ignored. The assessee has pleaded ignorance in regard to the said legal requirement and has demonstrated that the word Specified Domestic Transaction was inserted in section 92E by Finance Act, 2012 w.e.f. 01-04-2013 which is applicable for the first time from the assessment year 2013-14. Though the assessee obtained the Form 3CEB from the Chartered Accountant but had failed to up load electronically, as it has not aware about the recent changes and amendments in the provision. Further this being the first year of this new provision it could not upload the same electronically which is neither wilful nor wanton. The assessee has further pleaded that based on the report ..... X X X X Extracts X X X X X X X X Extracts X X X X
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