Penalty for delayed return filing and audit compliance rejected where audit was timely and delay was sufficiently explained.

Penalty was found unwarranted for alleged failure to get accounts audited and delay in filing the return. The accounts had already been audited before the specified date, and the audit report was not required to be filed with the return at the relevant time. The delay in filing was also explained by the accountant's sickness, and that explanation was accepted. On these facts, no basis for imposing penalty was made out, and the Revenue's challenge failed.

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Issues: Whether penalty was leviable for failure to get the accounts audited and for delay in filing the return.

Analysis: The accounts had been audited before the specified date. The audit report was not required to be filed along with the return at the relevant time. The explanation for the delay in filing the return was accepted, namely that the accountant was sick and the delay had occurred for that reason. On these facts, no ground for penalty was made out.

Conclusion: The penalty was not justified and the Revenue's challenge failed.

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