TMI Blog1992 (2) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... Asst. yr. Due date of filing the return Return filed on Delay in months Penalty levied by ITO in Rs. 1980-81 31.7.80 8.11.83 39 26,130 1981-82 31.7.81 16.1.84 20 22,309 1981-82 31.7.82 21.9.84 25 55,850 In response to the show-cause notice the assessee had filed replies dt. 18th Dec., 1985 wherein it was stated that the trial balance was showing a difference and the Accountant Shri Baldua left his service w.e.f. April, 1980 and thereafter partners were changed from time to time and due to inexperienced accountants, finalisation of the accounts for the asst. yr. 1980-81 was delayed and cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Khoria (who was the accountant from April, 1982 onwards, there being Shri Tiwari, Accountant who was there from August, 1980 to November, 1980). In para 6 of the order, the learned CIT(A) noted the mistakes detected by Shri Suresh Khoria. The assessee had also filed the Affidavit from the old Accountant Shri Baldua. On a consideration of the old matter, the learned CIT(A) observed that the assessee had been assisted by a leading firm of Chartered Accountants, that after the departure of the old accountant, a new accountant had always been there; that the assessee did not file the affidavit before the ITO; that the mistakes were not so alarming which could not be traced out by the new accountant; that other mistakes were also not of a very s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) had raised certain queries in regard to the assessee s explanations to which the assessee had again given replies and also filed the affidavit of the old accountant Shri Baldua. It is established that Shri Baldua, the old Accountant had left the assessee s service in April, 1980. The assessee had told the learned CIT(A) that this Accountant while leaving the job, left the accounts in a loss. The learned CIT(A) has already detailed the mistakes in the accounts in para 6 of the his order. Those mistakes relate to investment allowance reserve, bonus provisions, air cooler, moulding boxes, factory building cycle, preliminary expenses, unpaid liability, initial depreciation allowance and Oriental Bank of Commerce entries. Nothing has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit of various accounts and mistakes in the entries in the cash book Whereas it is the obligation of an assessee to file returns in time, it is equally his obligation to see that correct returns are filed. Therefore, on the basis of these facts, we are of the view that the IT authorities were not justified in holding that no reasonable cause existed for the delay for the period from 1st Aug., 1980 to 8th Nov., 1983 so far as the asst. yr. 1980-81 is concerned. So far as the subsequent two assessment years are concerned, it is true that unless the accounts for the asst. yr. 1980-81 had been duly reconciled and rectified as earlier the assessee could not purport to file the return for the subsequent asst. yr. 1981-82. If accounts could be re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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