TMI Blog1999 (10) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act in the business premises of the assessee, the assessee filed returns of income for assessment years 1985-86 to 1989-90 on 10-10-1990. Since the books of account were not audited, the Assessing Officer levied penalty under section 271B of the Act for all the years, i.e., 1986-87 to 1989-90. The appellate authority confirmed the penalty so far as the assessment year 1985-86 is concerned on the ground that the assessee failed to get the account books audited within the stipulated period. However, in the subsequent years, the order passed by the Assessing Officer levying penalty was set aside on the ground that since the books of account for the preceding assessment years were not ready and were not up-to-date, therefore, it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessment years 1986-87 to 1989-90 and getting them audited within the time permitted under section 44AB of the Income-tax Act ? Mr. Naik the learned counsel appearing for the revenue submitted that in view of section 44AB of the Act it is compulsory to get the books of account audited, if the assessee has a turnover as prescribed in this section. He submitted that, in the instant case, the assessee failed to get his books of account audited. He failed to submit his return in time and thus the Assessing Officer was justified in invoking section 271B. He submitted that there was no reasonable cause or explanation by the assessee for not getting the books of account audited. Therefore, not only the Commissioner (Appeals) but the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 273B whether the explanation offered by the assessee can be said to be the reasonable explanation or not is the only aspect required to be considered. The Commissioner (Appeals) has found that for the first year there was no reasonable explanation, but for the subsequent years, there was existence of reasonable cause. Can it be said that an error is committed more particularly when the Tribunal in its elaborate judgment has dealt with the aspect? 7. The Commissioner (Appeals) was of the view that unless the books of previous years are complete in all respects, it is not possible to get the books audited for subsequent years, though the same may be ready. He opined in para 6 of the order as under : As the books of account for as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... What is required to be noted as submitted by Mr. Soparkar is that the discretion is required to be exercised and when reasonable cause has been pleaded and if the same has been accepted, then the question of reference does not arise. He submitted that there are concurrent findings of facts. Looking to the facts and circumstances as narrated hereinabove, it cannot be said that any question of law arises in the matter. This is a case where the assessee could not comply with the provisions because there was no audit for the preceding year. For subsequent years though the books of account were ready, the same could not be audited. The Tribunal and the Commissioner (Appeals) found that the audit could not be completed because the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
