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2023 (3) TMI 507 - ITAT MUMBAILevy of penalty u/s 271B - failure to get accounts audited as per the provisions of section 44AB - HELD THAT:- In the present case, it is no doubt true that no documentary evidence is available on record that the assessee had authorised the aforesaid auditor to prepare its tax audit report u/s 44AB - as noted by the CIT(A), there is no confirmation affidavit from the said auditor in this regard. At the same time, we cannot be oblivious to the undisputed fact that the auditor has signed the statutory audit report, balance sheet, and profit and loss account as per the Companies Act, 1956, which fact is evident from the copy of aforesaid documents forming part of the paper book. From the perusal of the profit and loss account we further find that the assessee incurred a net loss during the year under consideration, which in the absence of filing the return of income within the due date cannot be carried forward and set off. Thus, the non-filing of the return of income and audited accounts cannot in any way be said to be beneficial to the assessee. Therefore, the aforesaid facts prove that the assessee had reasonable cause in terms of section 273B for not furnishing the audited report as per section 44AB - AO is directed to delete the penalty levied u/s 271B. As a result, the grounds raised by the assessee are allowed.
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