Why worry, even if the tax audit date is Not Extended?

Why worry, even if the tax audit date is Not Extended?

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Why worry, even if the tax audit date is Not Extended?

Section 273B gives power to the Income Tax Authorities to waive the penalty if there is a “Reasonable Cause” for such failure._
The past experience shows that the medical issues in the family, fire, theft, etc have been considered by the authorities as reasonable cause for non levy of the penalty. Even the court have condoned the delay in filing of audit report for the following reasons:
a)Resignation of the Tax Auditor resulting in delay of the audit report
b) Death of the partner, directors, Accountants, etc taking care of the accounts division.
c) Labour issues like strike, lockout, sealing or attachment of the factory
d) Natural Calamities, pandemics, etc.
If anyone is adversely affected by the corona & not able to get the books of accounts audited then such businessmen need not take the penalty on health and mind. The authorities considering the situation and facts have been kind enough to condone the delay.
It may be noted that this penalty is not automatic. It is applicable only if the authorities impose the penalty after verifying the explanations & reasons for delay in getting the books of accounts audited.
In the past, Income Tax Authorities & judiciary have carried the human touch so as to drop the penalty as there is no revenue loss to the Government Treasury due to delay in uploading the audit report.

1 Comment

  1. January 11, 2022
    Ashish Sharma

    Due to faceless penalty and appeal scheme it is apprehended that penalty shall be levied in all cases. Hence the cause of great worry.

    Reply

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