Assessee is liable for penalty u/s 271B if no reason is furnished in respect of any reasonable cause for not getting the accounts audited as required u/s 44AB

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Assessee is liable for penalty u/s 271B if no reason is furnished in respect of any reasonable cause for not getting the accounts audited as required u/s 44AB
Assessee is liable for penalty u/s 271B if  no reason is furnished in respect of any reasonable cause for not getting the accounts audited as required u/s 44AB
Dharmendra Kumar Vs ITO
Whether assessee is liable for penalty u/s 271B, if he has not furnished any reasonable cause for not getting the accounts audited as required u/s 44AB – YES: ITAT
– Assessee’s appeal dismissed: DELHI ITAT
Whether assessee is liable for penalty u/s 271B, if he has not furnished any reasonable cause for not getting the accounts audited as required u/s 44AB – YES: ITAT
++ it is noted that the assessee has not furnished its return within the time prescribed u/s 139 nor accounts have been got audited within the prescribed period u/s 44AB. The AO has estimated the turnover of the assessee at Rs.1.40 crore in the assessment proceedings u/s 143(3)/147 , which has been challenged by the assessee by filing appeal u/s 246A. The issue of finality of the turnover of the business of assessee was disposed off vide order u/s 250 in the appeal filed against the assessment order. It is provided u/s 275 that where the relevant assessment order or the other order is subject matter of appeal before the CIT(A) u/s 246A, penalty order has to be passed before the expiry of financial year in the course of which such proceedings have been initiated or within one year from the end of financial year in which order of the CIT(A) is received;
++ in the present case, the quantum of penalty to be imposed u/s 27I-B was dependent on the outcome of appellate order u/s 250 in the appeal filed against the assessment order passed by the AO. Therefore, the AO has validly kept the penalty proceedings u/s 27IB in abeyance and has disposed off the same within the prescribed period after the disposal of appellate order u/s 250. The assessee has not furnished any reasonable cause for not getting the accounts audited as required u/s 44AB. It is also noted that the AO has already established for failure of the assessee to get its accounts audited or to furnish a report of such audit as required u/s 44AB. Therefore, the order of CIT(A) does not need any interference.
ITA No.5005/Del/2018

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