TMI Blog2021 (11) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... requires to be revisited by the A.O for verifying the aforesaid claim of the assessee i.e he had duly got his accounts audited u/s 44AB of the Act and had uploaded the tax audit reports in Form No. 3CB and Form No. 3CD, dated 05.08.2011 a/w his return of income that was filed on 17.09.2011. In case, if the claim of the assessee is found to be in order, then, the penalty imposed by the A.O u/s 271B would stand vacated. We, thus, in terms of our aforesaid observations set-aside the matter to the file of the A.O for the limited purpose of giving effect to our aforesaid observations. Needless to say, the A.O shall in the course of the set-aside proceedings afford a reasonable opportunity of being heard to the assessee. Appeal filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) vide duly acknowledged letter dt. 14.01.2020. (3) Appellant prays for leave to add, amend or delete any ground/s of appeal on or before the final date of hearing. 2. Briefly stated, the assessee who is engaged in the business of trading in ferrous and non-ferrous metals, iron and steel alloys had filed his return of income for A.Y. 2011-12 on 17.09.2011, declaring an income of ₹ 8,39,357/-. Subsequently, the case of the assessee was reopened u/s 147 of the Act. Assessment was thereafter framed by the A.O vide his order passed u/s 144 r.w.s 147, dated 30.11.2016, determining the assessee s income at ₹ 15,22,640/-. 3. During the course of the assessment proceedings, it was observed by the A.O that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, according to section 44AB, the books of accounts of the appellant are required to be audited by a qualified and competent accountant (defined in section 288) since the total sales in the impugned assessment year exceeded 60 lakhs. During the assessment proceedings, to verify the alleged purchases claimed by the appellant to have purchased from the tainted parties identified as accommodation entry providers, the AO called for the audit report. However, the appellant did not furnish the audit report for verification of the AO in the assessment proceedings. Hence, also considering the fact that the Local sales amounted to ₹ 4,15,29,738/-, notice u/s.274 r.w.s Section 271B was issued and served on the appellant by way of affixture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ails, viz. name of the auditor, membership number of the auditor, date of audit report etc. a/w his return of income that was filed online on 17.09.2011, had thus grossly erred in law and the facts of the case in imposing penalty u/s 271B of the Act. It was further submitted by the ld. A.R that though the aforesaid fact of furnishing of the audit report a/w the return of income was duly brought to the notice of the CIT(A), vide a letter dated 14.01.2020 that was filed with him in the course of the appellate proceedings, however, the said material fact was not considered by him while disposing off the appeal. It was submitted by the ld. A.R that in the backdrop of the aforesaid facts, the penalty imposed by the A.O u/s 271B, which thereafter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide a duly acknowledged letter dated 14.01.2020, however, he had failed to take cognizance of the same. 9. In the backdrop of the aforesaid facts, we find, that it is the claim of the assessee that it had not only got his accounts audited as per mandate of law u/s 44AB of the Act, but had also duly uploaded the audit report in Form No. 3CB and Form No. 3CD a/w his return of income that was filed on 17.09.2011. Also, as observed by us hereinabove, there appears to be some substance in the explanation of the assessee as regards his failure to participate in the course of the proceedings before the lower authorities. Be that as it may, we are of the considered view that in the totality of the facts involved in the present case before us t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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