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TMI Blog2023 (3) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... evident from the copy of aforesaid documents forming part of the paper book. From the perusal of the profit and loss account we further find that the assessee incurred a net loss during the year under consideration, which in the absence of filing the return of income within the due date cannot be carried forward and set off. Thus, the non-filing of the return of income and audited accounts cannot in any way be said to be beneficial to the assessee. Therefore, the aforesaid facts prove that the assessee had reasonable cause in terms of section 273B for not furnishing the audited report as per section 44AB - AO is directed to delete the penalty levied u/s 271B. As a result, the grounds raised by the assessee are allowed. - ITA no.2093/Mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings under section 147 of the Act were initiated in the case of the assessee, and notice under section 148 of the Act was issued. The AO vide order dated 26/12/2018 passed under section 143(3) r/w section 147 of the Act assessed the total income of the assessee at Rs. 59,57,450. 4. Meanwhile, the penalty proceedings vide notice issued under section 271B r/w section 274 of the Act was initiated for the failure to get accounts audited as per the provisions of section 44AB of the Act. In reply, the assessee submitted that its auditor though had signed the statutory audited report, balance sheet, and profit and loss account as per the Companies Act,1956, and uploaded the same on the ROC Portal, however, due to certain unknown reasons, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this regard, the learned AR referred to the audit report prepared under the provisions of the Companies Act, 1956, which forms part of the paper book for the year ending 31/03/2011. The learned AR also submitted that because of the non-filing of the return of income and audited accounts, the assessee cannot set off the loss incurred during the year. 7. On the contrary, the learned Departmental Representative vehemently relied upon the orders passed by the lower authorities and submitted that there is nothing on record from the auditor that the audit report under section 44AB of the Act could not be filed due to a mistake on its part. 8. We have considered the rival submissions and perused the material available on record. As noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the Companies Act, 1956, which fact is evident from the copy of aforesaid documents forming part of the paper book from pages no. 11-34. From the perusal of the profit and loss account on page no. 14 of the paper book, we further find that the assessee incurred a net loss of Rs. 11,79,782, during the year under consideration, which in the absence of filing the return of income within the due date cannot be carried forward and set off. Thus, the non-filing of the return of income and audited accounts cannot in any way be said to be beneficial to the assessee. Therefore, the aforesaid facts prove that the assessee had reasonable cause in terms of section 273B for not furnishing the audited report as per section 44AB of the Act. Thus, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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