2018 (8) TMI 1370

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.... assessment year 2010-11 was filed by the appellant on 11.06.2010 declaring a total income of Rs. 4,62,460/-. Return was taken up for scrutiny assessment by issue of notice. 4. In the course of the assessment proceedings the appellant assessee had professed that, in order to get a loan of Rs. 2 crore from a bank, he had got prepared a bogus audit report and had shown pseudo turnover of Rs. 9,50,01,256/- in his return for the assessment year 2010-2011. 5. Assessing Officer, vide notice dated 30.03.2013, initiated penalty proceedings under Section 271B of the Act as the appellant failed to produce books of account and audit report under Section 44AB of the Act. 6. In response to the penalty notice, the appellant placed on record the ....

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....able under section 44AB of the IT Act before A.O. Learned Counsel for the Assessee submitted that this reply is filed by the C.A. of the assessee. This is no ground to challenge the authority of counsel for Assessee. Learned Counsel for the Assessee submitted that Shri Sundeep Kumar, C.A. was duly authorised by the assessee to appear before A.O. at assessment stage. Therefore, 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 sec....

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....by the assessee with return indicates that assessee was liable to get his books of account audited as per provisions of Section 44AB of the IT Act. However, the assessee deliberately did not get his books of account audited as required under section 44AB of the IT Act. Whatever report was produced is clearly manipulated and fabricated and was not based upon any evidence or material on record. Since the assessee failed to get his accounts audited as per Section 44AB of the IT Act, therefore, assessee is liable to penalty under section 271B of the IT Act. The contentions of the assessee would not disclose any reasonable cause for failure to comply with the provisions of law. The contention of assessee that since no books of account have been ....