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TMI Blog1986 (7) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on or before31-7-1981. On30-7-1981an extension application in prescribed Form No. 6 was submitted stating that the ' books of account are under audit '. The request was accepted and time allowed up to31-8-1981. On30-8-1981, a fresh extension request was made and the same reason was given as earlier. The ITO communicated rejection on12-9-1981. The assessee reacting filed third extension application repeating the reasons for the request. This application also came to be rejected. On31-10-1981, a fourth extension application was submitted, the reason stated being ' books of account under compilation ' and for the third time, the ITO rejected such request, the assessee was informed on11-11-1981. Fifth request followed on30-11-1981stati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... request exonerated it of all defaults of late filing and there appeared to be neither good nor sufficient reasons for seeking extension. By further observing that at no stage, any explanation was offered as to why the accounts of the public limited concern could not be audited in time and for the default in the case of the limited concern, the assessee did not possibly get any benefit, he held that the assessee had without reasonable cause failed to furnish its return within the time even after noting the contention for the assessee that a limited company gets six months to finalise its audit. 6. The learned Commissioner (Appeals) in his order dated 20-7-1984, which is brought in appeal stated that the reasons given by the assessee in its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self accepted in so many words that the primary business of the assessee and its income was derived from running of the distillary owned by the limited company the fact of non-completion of accounts, which was accepted by the auditors in writing, showed that the assessee was being prevented by a reasonable cause from filing its return. Very effectively referring us to the reasons given in the extension applications, he pleaded that the assessee's stand was consistent with the facts inasmuch as up to 31-8-1981, the cause given was non-auditing of accounts which in relation to the accepted facts necessarily meant the books of the company and in the last applications, the cause stated was the compilation of the accounts and the books of the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st party and shall be signed by the 1st party as and when so desired by the 2nd party." Referring us to the previous year in the company's case, which was also 31-3-1981, the point made out by him was that audit could be completed up to September 1981 and necessarily for filing return some further time was necessary and if under those circumstances, the return was filed on 31-12-1981, the assessee could not be said to be without reasonable cause particularly so when the necessary information in this regard continued to be filed and extension requested from time to time right up to December, itself. 11. Shri Sapra also referred us to several judicial pronouncements particularly the judgment of the Hon'ble Gujarat High Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the penalty order was that not only the return was filed late but show-cause notices were also sought to be avoided which is factually wrong position. Before the Commissioner (Appeals), not only the replies filed before the ITO were sought to be brought in close focus but the assessee's auditor stated that the books of account of the co-operative company from where the firm earned profit were under audit till September 1981 and after that compilation of accounts took further time which caused delay in filing of the assessee's return till December 1981. Such submission was made in writing by M.S. Chug & Co., chartered accountants ofSaharanpurvide communication dated 2-7-1984/12-7-1984 photocopy of which has been filed before us. 16. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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