2018 (5) TMI 1432

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....06.2010 at a total income of Rs. 4,62,460/-. During assessment proceedings, assessee failed to produce the books of account and audit report under section 44AB and therefore, A.O. initiated the penalty proceedings under section 271B of the I.T. Act. In response to the penalty notice, assessee furnished the tax audit report dated 06.06.2010 for relevant assessment year. Subsequent enquiries conducted by A.O. indicated that the above audit report was fabricated document and the concerned C.A. who signed the audit report had stated in the sworn statement recorded from him that he had prepared tax audit report without examining the books of account of the assessee. The A.O, therefore, concluded that assessee had violated the provisions of Secti....

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....e relevant assessment year was only Rs. 35,39,740/- But the new set of Prof it & Loss Account submitted in support of this sale f igures are not genuine as it shows credits only of sales and debits only of purchase & freight. The appellant had not debited any other expense in the Prof it & Loss Account and the new set of Prof it & Loss Account submitted wi th sales of Rs. 35,39,740/- is only an af terthought and not based on any evidence. Similarly the Balance Sheet submitted in support of his claim that section 44AB is not applicable to him, also is not genuine, as the opening balance, cash-in-hand, cash-in5 bank, f ixed assets, etc. varies from the f igures mentioned in the earlier Balance Sheet submitted along with the return of income. ....

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....nly Rs. 35,39,740/-, but failed to prove this claim with supporting evidence. As the appellant failed to prove the actual turnover of his business, I have no option but to sustain the penal ty of Rs. 1,00,000/- levied by Assessing Off icer under section 27IB for violation of the provisions of section 44AB and the grounds of appeal are rejected. 9. As a result, appeal is dismissed." 4. Learned Counsel for the Assessee reiterated the submissions made before the authorities below and submitted that assessee did not maintain any books of account, therefore, there is no question of getting the same audited. He has submitted that assessee in his statement also confirmed that no books of account have been maintained by him. He has submitted t....

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....whatever reply is filed at assessment stage, has been filed on behalf of the assessee which specifically states that books of account could not be produced as the same have misplaced. It would, therefore, show that assessee maintained books of account but same have not been produced before A.O. No audit report was filed or produced before A.O. as required under section 44AB of the I.T. Act. The statement of Shri Sundeep Kumar, C.A. was also recorded in which he has denied to have prepared tax audit report under section 44AB of the I.T. Act for assessment year under appeal. When he was confronted that the tax audit report under section 44AB of the I.T. Act is prepared, he has replied that he has signed audit report without examining of the b....