TMI Blog2013 (10) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... see to complete the process of finalisation of accounts and then submit an audit report within the time prescribed which they failed to do. Even other wise on facts, no material is produced by the assessee to substantiate the cause shown by the assessee. – Decided against Assessee. - I.T. Appeal. No. 40 of 2013 - - - Dated:- 25-9-2013 - CJ Dr. Manjula Chellur And A. M. Shaffique,JJ. JUDGMENT Manjula Chellur, C.J. Heard learned counsel for the appellant. We have also gone through the judgment cited by learned counsel for the appellant in The Commissioner of Income Tax v. M/s.Data Software Research Co.P.Ltd. (CDJ 2006 MHC 1925). 2. The brief facts of the case that led to filing of present appeal are as under: The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. 3. The appellant relies upon paragraph 10 of the judgment in M/s.Data Software Research Co.P.Ltd's case (Supra), to contend that the reason explained by the appellant for the delay in finalisation of accounts so as to file return is absence of the accountant during the year 2005. Paragraph 10 of the above judgment reads as under: "10. Keeping the above principles in mind, we find that in the instant case, the explanation offered by the assessee is that they could not file the audit reports, as they had not received the audit reports from its branch office at USA. This shows that they did not have the audit reports in their hand and therefore, the question of deliberate or mala fide intention on their part does not arise and as a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by learned counsel for the appellant from paragraphs 9.1 to 9.4 various judgments of the High Court of Madras and Supreme Court are referred to. From reading paragraphs 9.1 to 9.4, the settled law would be that a reasonable cause can be said to be a cause which prevents a man of average intelligence and ordinary prudence, acting under normal circumstances, without negligence or inaction or want of bona fides on his part. It is also well settled from the above decision that so far as reasonable cause, it depends upon the facts and circumstances of each case. 5. Ultimately, one has to see whether the cause shown by an assessee would constitute a good cause for the non compliance in order to avoid him from paying the penalty imposed. In orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss with the assistance of any other person or not would be the test to know whether there is sufficient or reasonable cause. In the absence of engaging any other accountant to complete the accounts and then submit the audit report in time, we fail to understand how the judgment relied upon by learned counsel for the appellant would come to his assistance. In the case referred to above, it was a non completion of audit of the accounts of a branch at USA which prevented the head office from submitting the records. It was not possible for the head office in India to complete the accounting and then submit audit report within the time prescribed. But, in this case it was within the reach of the assessee to complete the process of finalisation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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