TaxTMI 
TaxTMI 
2011 (3) TMI 120
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....icer u/s. 271BA of the Income-tax Act, 1961. 3. Facts in both the assessment years are similar and for brevity, we illustrate the facts relating to A.Y. 2003-04. The assessee has filed its return of income for the A.Y. 2003-04 on 1st December, 2003 showing income of Rs. 53,750. The assessee has entered into an agreement with Global Info Systems Inc., USA for providing medical transcription services and during the previous year, it has made international transactions for an amount of Rs. 1,09,41,882 with the said concern. In view of such international transactions made by the assessee during the previous year, as per the provisions of section 92E of the Act, it was required to obtain and furnish a report from an accountant in the presc....
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.... not furnished the required audit report u/s. 3CEB of the Act and further submitted that there was no loss of revenue to the Department on account of non furnishing of the said audit report as the assessment was completed with no addition. He further contended that initiation of penalty proceedings is barred by limitation. He submitted that all the related information for the purpose of assessment has been furnished by the assessee. Similar submission is made for the A.Y. 2005-06. He relied on the judgement of jurisdictional High Court in the case of CIT vs. Hensons Industries, 251 ITR 693 wherein it was held that "mere fact that the assessee failed to enclose the audit report along with the return itself would not disentitle it to the bene....
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....a fide belief that the offender is not liable to act in the manner prescribed by the statute." 6. Further regarding assessment year 2005-06 he submitted that there is no assessment u/s. 143(3) and only return was processed u/s. 143(1) and thereafter there was re-assessment u/s. 147 only and the report was furnished during the re-assessment. 7. The learned DR, before us, relied on the following judgements for the proposition that the assessee shall show the reasonable causes for not filing the audit report u/s. 92E within the stipulated time. According to the learned DR the assessee is not having any reasonable cause and the explanation given by the assessee is too general in nature: a. Shri Jagdish Prasad Chowdhury, 211 ITR 472 ....
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....rom the argument of the assessee. The assessee has been assisted by competent legal professionals and chartered accountants and we do not find any reason as to how the assessee was prevented by sufficient cause to prepare the audit report from chartered accountant and furnish the same to the authorities as stipulated u/s. 92E. The reason given by the assessee herein is too general in nature and the failure to furnish the audit report as per the provisions of section 92E is totally attributable to the gross negligence of the assessee and there is no good and sufficient reason in not filing the audit report within the stipulated time. The assessee herein could not show any reasonable cause in not filing of the audit report in time. 11. ....