TaxTMI 
TaxTMI 
1987 (9) TMI 85
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....ember 1983. Notice under s. 143(2) was issued in response to which Shri P.K. Sunderka, CA appeared from time to time. Case was discussed. On perusal of the return it was noticed that the assessee did not file with the return the audited copies of accounts and an audit report in form No. 10-B prescribed under r. 17B of the IT Rules, 1962. Since the non-filing of the said document with the return amounted to the violation of the provisions of. 12A(b) the counsel of the assessee was required to explain as to why the benefit ss. 11 & 12 should not be disallowed to the assessee on account of the said statutory lapse. In response to this the counsel of the assessee explained that the books of the assessee were audited only on30th June 1984and hen....
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.... limit for compliance of these provisions. The only requirement under the section is that the return should be accompanied by the audited copies of statements of accounts and an audit report in form No. 10B. In other words, only requirement of law under this section is that on the date of filing of the return the assessee must have the audited books of accounts. If the assessee had the audited copies of the books of accounts on the date of filing of the return and if per chance he forgets to file the audited copies of statements of accounts and form No. 10B alongwith its return of income, the law can permit him to file the said documents during the course of assessment proceedings also. The law contained in s, 12A(b) appears to be of proced....
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....ning of the ITO, which has been reiterated before us by the learned departmental representative. The learned Departmental Representative also relied upon the ratio of the decision of the Delhi High Court in O.P. Malhotra vs. CIT (1981) 129 ITR 379 (Del) at pages 383 to 385 and further contended that original return of income, filed by the assessee being not under s. 139(1) of the Act, the assessee had no right to revise the return under s. 139(5). Sec. 139 (4A) of the Act is also pressed into service on behalf of the Revenue, alongwith ratio of the decision of the Hon'ble Supreme Court as stands reported in (1950) 18 ITR 274 (SC) (sic). The learned departmental representative further contended that audit report was not in existence when the....
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....een allowed to the assessee by the learned AAC. 6. We have reproduced above the verbatim reasoning of the learned ITO. He has observed that, "..... at best these documents can be regarded to have been filed during the course of assessment, proceedings." He also held that, "The contained in s. 12A(b) appears to be of procedural nature but the penalty prescribed for its infringement speaks volumes about the intention of the legislature in laying down these provisions." 7. Being that, what is the second (sic) of the Revenue at the assessment stage, when any non compliance of procedure will result in an irregularity and certainly not an illegality. Non compliance and non-furnishing of statutory audit report in statutory form No. 10B along....