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2019 (5) TMI 1110 - AT - Income TaxPenalty u/s 271B - tax audited report u/s 44AB upto 30th Sep., 2012 - assessee case is based upon the criminal proceedings and health issues which resulted into non-getting audit of the books of account - HELD THAT:- The criminal proceedings were mounted in January, 2012 and the bail was granted in May, 2012 therefore even if the medical reasons of one of the director is accepted, it cannot be accepted that the other director was free enough to run business but was not capable to get the accounts audited. It was further observed that neither the date of sealing of factory by the Bank nor any document in its support has been provided and therefore in consideration of the facts mentioned above, the default of not getting the accounts audited does not appear to be for genuine reasons and for the reasons beyond the control of the appellant. On the contrary, the accounts were not audited with a specific motive to scuttle the criminal proceedings. Even on specific query as to whether the income in Income tax Return and audit report is same or not, neither reply nor audit Report furnished. The assessee has taken the stand of criminal proceedings and illness of one of the directors in order to avoid the penal consequences of Section 271B of the Act which we have already held no nexus with non-compliance of legal obligation. It is thus clear the assessee has not been able to give any sufficient and reasonable cause for not getting the accounts whatsoever maintained by it audited u/s 44AB and therefore failed to discharge the onus. In the overall consideration and analyzation and keeping in view the spirit of stringent provisions, we are of the considered view that the authorities below rightly invoked the provisions of section of 271-B of the act and imposed the penalty - Decided against assessee.
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