2017 (3) TMI 905

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.... of the assessee, is the question that falls for decision in this income tax appeal. The appellant-assessee is a partnership firm engaged in the business of trading in goods. The return was filed by the assessee on 27.06.1996 along with the audit report in Form 3CB and 3CD of the Income Tax Act declaring the income of Rs. 5180/. Since the assessee has failed to audit the account in respect of the previous year as required under Section 44AB of the Act before the due date on 31.10.1994, penalty proceedings were initiated against the assessee under Section 271B of the Act. The assessee tendered the explanation for the delay in auditing the accounts. The assessee pointed out that the accounts of the firm were maintained manually and the ....

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....15.02.2001, the appeal was listed before the tribunal for the first time and though the clerk working in the office of Rao & Yadav Chartered Accountants sought an adjournment of the matter on the ground that the chartered accountant of the firm was ill and the matter be adjourned, the tribunal refused to grant the adjournment and allowed the appeal filed by the revenue. Shri Bhattad, the learned counsel for the appellantassessee submitted that on the first date of hearing, the tribunal erroneously rejected the request of the assessee for adjournment and decided the appeal filed by the revenue without granting an opportunity to the appellant. It is submitted that it is casually observed by the tribunal in its order that the illness of the....

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.... employees that had resigned, had a key role to play in maintaining the accounts. The assessee had pointed out that the accountant remained absent throughout September1994 due to his illness and thereafter he suffered a paralytic attack as a result of which, he was forced to resign the job. The assessee had placed the copies of the resignation letters before the authorities to point out that the accountant and some other employees had left the job at the relevant time. The assessee had pointed out that since the accounts of the firm were maintained by the accountant and he was ill, the same could not be maintained, specially when there was a huge difference of Rs. 86,000/in the trial balance and it could not be reconciled. For proving th....