TMI Blog2019 (6) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... oss receipts exceed ₹ 40,00,000/- as per the provisions of section 44AB - HELD THAT:- We have heard both the parties and perused the material placed on record. The assessee has assigned reasons for failure to get the accounts audited such as survey u/s 133A was conducted, part time accountant is incapable of summarizing the transactions and the partners ignorance. Survey u/s 133A was conducted in January 2008, whereas, the time limit for filing the appeal was 30.09.2008. It is the mandatory obligation of the assessee to get the accounts audited and submit the Audit report before the due date. The illiteracy or ignorance of the partners is not a sufficient reason. Therefore, we do not see any reason to interfere with the order of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me as per the return of income ₹ 2,11,230 Add : Disallowance u/s 40a(ia) as discussed above 3,86,072 Add : Disallowance of expenditure under the head Provisions to crew members 3,77,772 Add : Disallowance of expenditure under the head wages for other boat staff 97,640 Add : Disallowance of payments made to par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld.CIT(A). Accordingly, appeal of the assessee is allowed for statistical purpose. I.T.A. 146/Viz/2019, A.Y.2008-09 8. All the grounds of appeal are related to the penalty levied by the AO u/s 271B of the Act for the A.Y.2008-09. The assessee firm filed its return of income admitting total income of ₹ 10,98,018/- on 11.12.2008. The assessee declared business receipts of ₹ 1,99,78,829/- representing Boat Hire Charges and income from fish sales. Since the assessee s gross receipts exceed ₹ 40,00,000/- as per the provisions of section 44AB of the Act, the assessee is required to get it s accounts audited and submit the copy of the audit report in the prescribed format before the due da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even bother to fulfil the requirement of getting the accounts audited even belatedly. Therefore, the Ld.CIT(A) held that there is no reasonable cause for not getting the accounts audited and accordingly confirmed the penalty levied by the AO. For the sake of clarity and convenience, we extract relevant part of the order of Ld.CIT(A) in para No.6.7 and 6.8 of the order which reads as under : 6.7. I have perused the reasons submitted by the assessee before the AO during the course of penalty proceedings and grounds recorded by the AO for rejection of the same. Accordingly, I am of the considered opinion that none of the reasons adduced by the assessee such as survey action u/s 133A of the Act, accountant i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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