TaxTMI 
TaxTMI 
2014 (4) TMI 287
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....ax Act for the A.Y. 2009-10. 3. Brief facts of the case are that assessee had filed its return of income declaring a loss of Rs. 4,30,01,359/- on 30th September, 2009. Subsequently, a revised return was filed by the assessee at a loss of Rs. 3,39,83,024/- on 31st March, 2011. The assessment was completed at a total loss of Rs. 3,09,54,039/-. 4. The AO noticed that the statutory auditors M/s BSR & Associates, Gurgaon, signed the accounts only on 17th November, 2011 (correct date as per assessee's counsel is 27th November, 2011) while the revised return was filed on 31st March, 2011. The AO further observed that assessee explained that due to certain differences among the stakeholder and the Auditors, the signing of the account was dela....
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....e assessee's reply levied a penalty of Rs. 1,50,000/-. 5. Before ld. CIT(A) the assessee had advanced two fold contentions: a. Since the statutory audit of the company got completed on 27th November, 2011 (wrongly mentioned as 17th November, 2011), therefore, there was reasonable cause for not furnishing the tax audit report in the prescribed form. b. In the alternative it was submitted that assessee had obtained Tax Audit Report on 30th September, 2009 for the accounts of the previous year ended 31st March, 2009. This tax audit report in Form 3CB with Annexure in a prescribed Form 3CD was duly submitted to the AO during the proceedings and was not rejected by her. 5.1 Ld. CIT(A), however, held that there was no reasonable cause....
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.... 8. Ld. CIT(DR) referred to second proviso to section 44AB and submitted that in view of the said proviso, the assessee was required to furnish the report in form 3CA and could not submit the report in form 3CB. She further referred to Rule 6G of the Income Tax Rules which deals with the report of audit of accounts to be furnished u/s 44AB and submitted that since the assessee was required to get its account audited under the Companies Act, therefore, audit report had to be furnished form 3CA. 8.1 Ld. CIT(DR) submitted that by furnishing report in form no. 3CB the assessee cannot escape the penalty for not furnishing the report in form 3CA. 8.2 We have considered the rival submission and have perused the record of the case. 9. T....
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....and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year, get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed: Provided that this section shall not apply to the person, who derives income of the nature referred to in sec. 44B or sec. 44BBA, on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later: Provided further that in a case where such person is required by or under any other law to get his accounts audi....
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....her law. Unless the aforementioned three ingredients are fulfilled, the assessee cannot be accepted to furnish a further report in form prescribed under this proviso (Form 3CA). 11. Admittedly, in the present case, these ingredients are not fulfilled and, therefore, operation of second proviso is ruled out. Now the second question arises as to whether in such a situation assessee is required to wait till completion of statutory audit under the relevant provision of the Act or it has to furnish the tax audit report as contemplated u/s 44AB. The answer to this is obvious and assessee cannot take the plea of not getting its account audited beyond the specified date and, therefore, is required to furnish the tax audit report as per the pr....