TaxTMI 
TaxTMI 
2013 (11) TMI 1668
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....a company engaged in the business of Land acquisitions and Developers. The assessee e-filed its return of income for the impugned assessment year on 30-03-2009. Although the total sales shown was at Rs. 72,49,812/- the Audit report mentions the date of Audit as 11-02-2009 as against the due date of filing of such Audit report was 31-10-2007. The Assessing Officer further noted that a survey was conducted u/s.133A at the premises of the assessee company on 10/11-01-2008 and it was found during the survey that the books of account of the assessee were incomplete for the impugned assessment year. Therefore, he was of the opinion that the assessee had not got its books of account audited as per the provisions of section 44AB within the specifie....
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....nds to be sold/transferred to M/s. Marathon Prachin Infrastructure Pvt. Ltd. at revised price negotiations, estimated the gross margins @Rs.50,000/- per acre and on this basis, the books of accounts were completed and audited. In the circumstances, it was not possible to get the accounts audited on or before the due date of tax audit, i.e. 31-10-2007. Therefore, there were sufficient and bonafide reasons for not getting the accounts audited on or before the due date of tax audit. 4. However, the Assessing Officer was not convinced with the arguments advanced by the assessee and levied penalty of Rs. 36,249/- for violation of the provisions of section 44AB. 5. Before the CIT(A) the assessee reiterated the same submissions and was without a....
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....finalization of the accounts and audit no agreement could be reached with M/s. Marathon Prachin Infrastructure Pvt. Ltd. regarding the prices at which the lands would be transferred and the contract was at stake about its further continuation. Due to such uncertainties about the profits on the business transactions no income could be recognised and therefore the books of accounts were incomplete on the date of survey and accounts were not audited. It has been held in various decisions that mere failure to file Audit report in time will not justify levy of penalty as power us.271B is discretionary (Hon'ble Madras High Court in the case of Thanjavur Silk Handloom Weavers Co-operative Production and Sales Society Ltd. Vs. Union of India report....