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2017 (9) TMI 369 - AT - Income TaxPenalty levied u/s 271B - failure to get accounts audited u/s 44AB - reasonable and sufficient cause for not getting the accounts audited - Held that:- Assessee claims that there is sufficient and reasonable cause for not getting its accounts audited as its books of account and other relevant documents were destroyed by natural calamity, i.e. flood on 30-06-2007 because of which it could not prepared its books of accounts to be produced to the auditor for audit of accounts. The assessee has furnished relevant documents in support of its claim that there was flood which destroyed its books of account. We find that the assessee has filed details of insurance claim made for loss of stock and other assets on account of flood on 30-06-2007. We find that the assessee claims to have maintained books of account, however those books of account were destroyed in flood because of which the assessee could not produce the books of account to the auditor to get its books of account audited u/s 44AB of the Act. In this case, the assessee has proved beyond doubt with necessary evidence that there was sufficient and reasonable cause for not getting its accounts audited u/s 44AB of the Act. Therefore, we are of the view that the AO was erred in imposing the penalty u/s 271B of the Act. The CIT(A), without appreciating the facts, simply upheld penalty levied by the AO. - Decided in favour of assessee.
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