TMI Blog1992 (12) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of Rs. 45,15,499. The provisions of section 44AB of the Act in regard to tax audit are also attracted in its case and the assessee ought to have got its accounts audited on or before 31-7-1987. This was not done and the assessee obtained the audit report only on 30-10-1987, on which date it filed its return of income involving a delay of about three months. No penalty was levied under section 271(1)(a) of the Act for belated filing of the return, but penalty was levied under section 271B for not getting the accounts audited within the specified date which fell on 31-7-1987. It was explained that the accountant of the assessee fell ill, and hence the delay in getting the accounts audited had taken place. The Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G. Nair emphasised the word "may" occurring in that section and also contended that the section should be read with section 273B of the Income-tax Act, wherein "reasonable cause" was not excluded. We uphold the contention of the learned Chartered Accountant. Section 271B has to be read with section 273B. Section 273B, as inserted by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986 with effect from 10-9-1986, is as follows : " Notwithstanding anything contained in the provisions of section 270, clause (a) or clause (b) of sub-section (1) of section 271, section 271A, section 271B, sub-section (2) of section 272A, sub-section (1) of section 272AA, sub-section (1) of section 272B or clause (b) of sub-section (1) or clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounts but also to be of some useful assistance to the auditor in having the accounts reclassified, or in explaining to the auditor the entries made by him, or to carry out the corrections with regard to clerical or other mistakes in postings and castings etc., found in the accounts. It is common experience that an accountant will become a first suspect if he absents himself while the audit is in progress. That would show the importance of the interaction of the accountant with the auditor in the course of audit and the significant role played by him in assisting the audit. These aspects have not been considered in the proper perspective either by the Assessing Officer or by the first appellate authority. Further, penalty was not levied in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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