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2017 (3) TMI 905 - HC - Income TaxPenalty proceeding under Section 271B - reason for the delay in auditing the accounts - Held that:- The Commissioner (Appeals), rightly considered the documents placed by the assessee on record to hold that the explanation tendered by the assessee sufficiently explained the delay in not auditing the accounts before the specified date. It appears that on the first date of hearing when time was sought by the assessee as the chartered accountant was ill, the tribunal went in to the niceties of the matter to observe that there was no written authority from the assessee for seeking the adjournment and the adjournment application was not signed by the chartered accountant and was signed by the clerk working in the firm of the chartered accountant. At least on the first date of hearing, the tribunal could not have rejected the application of the assessee for an adjournment by recording the aforesaid reasons. The tribunal has casually observed that the cause of illness of the accountant, resignation of the employees of the firm and the difference in trial balance are casual and routine excuses and the assessee had not substantiated or proved the cause as aforesaid. We find that the assessee had produced documents on record to show that the accountant and the other employees had resigned during the relevant period and had also produced the original trial balance and ledger to point out that there was a huge difference in the trial balance and the same could not be reconciled. Though there were documents on record to substantiate the cause for the delay, the tribunal has erroneously held that the cause were not substantiated or proved. - Decided in favour of assessee
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