1980 (11) TMI 76

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...., the stand taken by the assessee was that it was a pilot project company of Orissa Government with Government officers as Chairman, Directors and Accountant of the Company. Audit work was undertaken in three stages: firstly, by the internal auditors of the Department; in the second stage by the statutory auditors as appointed by the company law and lastly by the Accountant General auditors. The accountant of the assessee remained busy through out the year in attending to them. The financial condition of the assessee did not permit it to appoint extra hands for the early completion of the account for the audit work. It was further urged that the accountant of the company late R.C. Barik was not keeping in good health and he succumbed to dea....

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....ellant should not ask for extension of time provided under the Rules. It has been stated that the Accountant was busy in complying with the requisitions of Internal and External Audit. But it is seen on perusal of record that the returns are not accompanied with audited profit and loss accounts and balance sheet. It may be noted that the default continued even after the death of Accountant. In the circumstances, it is difficult to appreciate that the Accountant was solely responsible for the delay in submissions of the returns for the two years under appeal." He has further held that since no notice under s. 210 was issued by the ITO to the assessee to pay advance tax and because the assessee paid the said sum of Rs. 10,000 as tax in adv....

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.... after the due date i.e., 31st July, 1974. There is also no evidence on the record to prove that the accountant of the assessee, was ill as alleged and the period, if any, for which he was ill. Further since the audited accountant are to be signed by the Managing Director and the Principal Officer of the assessee had to sign and file the return, assuring without admitting that the accountant of the assessee at the relevant time was not keeping good health, it is not shown and proved as to how fat that illness of the accountant had effected the non-completion of the accounts when the assessee had four months for completing its accounts so as to enable it to file the return. It is also not shown that illness has in any manner affected the int....