TMI Blog2020 (1) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... red and the mere fact that the audit of the assessee was conducted under the provisions of the Co-operative Societies Act, would not be sufficient for such compliance. Furnishing of the report of audit in the prescribed form accompanied with a further report by an Accountant in the prescribed form, is a mandatory requirement for proper compliance. Since the appellant had failed to show any 'reasonable cause', coming within the purview of Section 273B, the imposition of penalty under Section 271B cannot be interfered with. Reliance on the circular of CBDT - it is contended that, the audited report need not be attached along with the returns or furnished separately at any time before or after the due date; but it need only to be retained by the assessee and produced if it is called for by the Income Tax Authority during any proceedings under the Act. The Circular says that no penalty under Section 271B shall be initiated or levied for not furnishing the tax audit report before the due date. Therefore the imposition of penalty under Section 271B cannot be sustained, is the contention. - We are not persuaded to accept the above contention in view of the mandatory provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he further report by an Accountant in the Form prescribed, as required under the second proviso to Section 44AB. Therefore it is held that the appellant is liable to be imposed with penalty under Section 271 B and ordered to pay penalty of ₹ 1,50,000/- as provided under the said Section. 3. The order imposing penalty was taken up in appeal before the Commissioner of Income Tax (Appeals). The first Appellate Authority had found that the appellant had failed in complying with the statutory requirement of furnishing the audited report in Form No.3CA as required under Section 44AB, along with the further report of the Accountant as mandated. It was found that, what was filed by the appellant is only a 'Certificate' issued by the Joint Director (Audit), Thiruvananthapuram, Co-operative Department, dated 03.07.2018, accompanied by the 'Audit Note' of the assessee Society. It was found that, filing of Form No.3CA along with a further report by an Accountant is the mandatory requirement and the mere getting of the accounts audited under any other law will not suffice compliance of the said requirement. In the absence of compliance of the provisions contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h person is required by or under any other law to get his accounts audited it shall be sufficient compliance with the provisions of this section? 3 Whether the Appellate Authorities are justified in confirming the penalty imposed by the assessing officer without applying mind while an Audit Report has been submitted as per the proviso to S.44AB? 6. We heard learned counsel for the appellant Adv. Sri.C.A.Jojo, as well as learned standing counsel appearing for the respondents. Section 271B of the Act reads as follows ; 271B. Failure to get accounts audited If any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or [furnish a report of such audit as required under section 44AB], the [Assessing] Officer may direct that such person shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of [one hundred fifty thousand rupees], whichever is less. It is evident that, if there is any failure on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular form prescribed for the said purpose. 9. Since the appellant is a person required under the Co-operative Societies Act to get its account audited under that Act, it would be sufficient compliance under the second proviso to Section 44AB, if the appellant gets the account of its business audited under the Co-operative Societies Act before the specified date and furnishes that report of audit, along with further report by an Accountant in the form prescribed, before the Assessing Authority under the Income Tax Act, before the date stipulated for the said purpose. It is to be noted that, the further report required by an Accountant need to be furnished in Form 3CD. Evidently the appellant had not furnished the report of the audit under Co- operative Societies Act in the form prescribed, which is Form 3CA. On the other hand, his contention is that the accounts were audited by the Co-operative Department and the Joint Director had issued a Certificate to that effect. Probable contention raised by the appellant is that since the appellant is a person required by the Co-operative Societies Act to get its accounts audited under that Act, the audit report need not be f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
