Query- I am a proprietor of three firms which are under tax audit. However, I am allowed to upload only one tax audit report. What is the remedy?

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Query- I am a proprietor of three firms which are under tax audit. However, I am allowed to upload only one tax audit report. What is the remedy?

Query]

Sir, I’m an individual having 3 different business. I’m maintaining 3 different accounts. All three business have turn over more than 2 crores and has been audited by three different chartered accounts. I’m in possession of 3 different Tax Audit Reports.

The Income Tax Website permits me to upload only one Tax Audit Report which is done. However, I have attached other two financials and 3 CD’s as attachments in the IT Return.

The turnover of all three business are clubbed and returned filed. The case is taken up for scrutiny and the Assessing Officer is of the view that I have filed only one 3CD and will look only into that and will disallow all other expenses and also impose penalty for undisclosed income.

My Auditors are of different opinions and I am tensed. Can you please help me as to how I should plead my case with the Assessing Officer?

Thanks in advance.

Regards,

Ravishankar.

Opinion:

Dear Ravi Shankar ji

In your case, ideally a consolidated tax audit report (i.e., 4th one) of all 3 firms should have been uploaded. However, since you have already uploaded one audit report only due to non availability of options to file individually all three audit report and not aware of the options to have 4th audit report combing all 3 audit report, AO is proposing to levy penalty.

It may be noted that the penal provisions u/s 271B in such case is subject to “reasonable cause” U/s 273B. If there is a reasonable cause in not complying with the provision of audit report uploading, then the penalty can be waived by the AO. In your case, there appears to be a reasonable cause for not imposing a penalty.

You may request AO to give immunity from penalty  u/s 273B of the Income Tax Act – 1961.

2 COMMENTS

  1. make a individual balance sheet of all 3 firms and a consolidated b/s also and show to officer about that income tax site has not allowed to upload 3 tax audit with same pan so i’ve made consolidate all 3 b/s along with profit and loss account and paid tax on consolidated profit. mention all about in tax audit

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