TMI Blog1999 (12) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... -93 for the opinion of this court : "1. Whether the Tribunal was justified in the circumstances of the case to distinguish the audit report obtained under section 44AB of the assessment year 1992-93 from that of the assessment year 1991-92 and thus arrive at a different conclusion ? 2. Whether a qualified audit report by the chartered accountant in the circumstances of the case is invalid and has no sanctity in the eyes of law? 3. Whether the Tribunal was justified in the circumstances of the case in refusing to consider the contention that section 44AB of the Income-tax Act was not attracted in the case of the corporation since its activities do not fall in the category of business? 4. Whether the activities of the assessee-Corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profession if his income from business or professional exceeds one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, exceeds ten lakhs rupees in any one of the three years immediately preceding the previous year, shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act. Section 44AB then provides for audit of accounts where the total sales, turnover or gross receipts exceed forty lakh rupees. There is no dispute that the assessee-applicant's gross receipt exceeds forty lakhs of rupees and, therefore, it was obliged to maintain accounts and furnish audit report as prescribed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s branches. However, the said balance-sheet and profit and loss account ended on that date has been adopted by the board of directors in their meeting dated October 29, 1992. We have not obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of the audit. We are unable to express whether proper books of account have been kept by the corporation so far as appears from our examination of books. In view of comment made above and to the best of our information and according to the explanations given to us, we are unable to express our opinion whether the said accounts give a true and fair view --- (i) in the case of balance-sheet of the above mentioned corporation's aff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntant-General, U. P. Thus, the report candidly acknowledged that there was no audit and such a report could not be held to be a valid compliance with the provisions of section 44AB. Therefore, the answer to question No. 2 is self-evident and the same cannot be said to be a referable question of law. As regards proposed question No. 1, the Tribunal has stated that in the earlier year, i.e., 1991-92, the question of the validity of the report of the chartered accountant was not raised at all. The applicant has annexed a copy of the Tribunal's order for the assessment year 1991-92 with this application and it shows that in that year the question of the validity of the report was not there. On the other hand, the question was whether delay in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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