9911796707
TMI Blog2024 (9) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... lay in filing the audit report under section 44AB. In the instant case, assessee has stated that books of accounts are destroyed by white ants and the audit report of the books of accounts was commenced after 26.11.2018 only. Section 273B provides that no penalty thereby imposable on the assessee, if the assessee proves that there is a reasonable cause for the said failure. However, assessee was not able to submit any evidences to show that assessee is having a reasonable cause showing that the books of accounts have been destroyed by the white ants. The cause adduced by the assessee could not be considered as reasonable cause. In the absence of assessee not being able to demonstrate reasonable cause the non-filing of audit report attracts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he audit report as required within the due date under section 139(1) of the Act. However, it was noticed that assessee has filed the audit report on 04.12.2018 which is beyond the extended due date of 31.10.2018. The Assessing Officer thereafter issued show cause notice on 05.06.2021. In response, assessee submitted that the audit report in the Form - 3CB and Form - 3CD was filed on 04.12.2018. Assessing Officer rejected reply of the assessee and proceeded to levy of penalty under section 271B of the Act @ one-half percent of the total turnover subject to maximum penalty Rs. 1,50,000/-. 3. Aggrieved by the penalty order, assessee filed an appeal before Ld.CIT(A). The Ld.CIT(A) considering the submissions and reply by relying on various jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpletion of the audit. Ld.AR pleaded that there is a sufficient reasonable cause for the assessee for not filing the audit report under section 44AB within the time limit prescribed. He therefore pleaded to delete the penalty. 7. Per contra, Ld. DR heavily placed reliance on the orders of the revenue authorities. 8. We have heard both the sides and perused the material available on record. Admittedly assessee has not completed the audit of the books of accounts under section 44AB of the Act for the impugned assessment year. Submission of the assessee is that the invoices and other records are destroyed by the white ants forcing the assessee to reconstruct the books of accounts for submitting to the Chartered Accountant for getting the boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or (d) carrying on the profession shall, if the profits and gains from the profession are deemed to be the profits and gains of such person under section 44ADA and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year; or (e) carrying on the business shall, if the provisions of sub-section (4) of section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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