TaxTMI 
TaxTMI 
1996 (12) TMI 109
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.... a registered firm carrying on the business in the hardware goods. For the assessment years in question, the AO initiated penalty proceedings under s. 271B on the ground that the assessee failed to get its accounts audited within the date specified under s. 44AB. In response to the notice, the assessee filed its explanation stating that the delay in obtaining the tax audit report for the assessment years in question was due to the non-finalisation of accounts and the delay in obtaining the tax audit report for the immediately preceding year. According to it, there was a delay in finalising the accounts and obtaining the audit report for the asst. yr. 1985-86. Hence, the accounts for the asst. yr. 1986-87 could not be finalised and could not....
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....e tax audit report within the prescribed date. It was contended that the Departmental authorities failed to take into consideration the circumstances under which the assessee was not able to obtain the tax audit report for the assessment years in question within the specified dates. The learned counsel also relied on the orders of the Tribunal and filed copies of number of orders contending that the delay in finalising the accounts and obtaining audit report for the immediately preceding year is sufficient cause for the delay in obtaining tax audit report in the subsequent assessment years. The learned Departmental Representative supported the order of the CIT(A). It was contended that there was no justification for a long delay in obtainin....
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....ax audit report for that year. The CIT(A), however made an observation that if there was a delay in finalising the accounts for the asst. yr. 1985-86 and also obtaining the tax audit report another auditor should have been approached for completing the same within a short period. Similarly, the CIT(A) made an observation that when the accountant fell ill and ultimately died in 1988 a new accountant should have been appointed immediately for finalising the accounts. But the above observation made by the CIT(A) are out of the context when the assessee had entrusted the work of finalising the auditing to an accountant it is not possible for the assessee to take the books and entrust the books to some other accountant. Similarly, the assessee's....