2023 (3) TMI 507

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....t year 2011-12, which in turn, arose from the penalty order dated 28/06/2019, passed by the Assessing Officer ('AO') under section 271B of the Act. 2. The only grievance of the assessee is against the levy of penalty under section 271B of the Act. 3. The brief facts of the case as emanating from the record are: The assessee is engaged in the production of cinematographic films, educational programs, advertisement, production training institutes in India and abroad, setting up educational documentaries, motion pictures etc. On perusal of information available on the ITD system and analysing the Individual Transaction Statement from Non-Filers Monitoring System ('NMS') pertaining to the assessment year 2011-12, it was noted that despite....

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....ssessee against the penalty order on the basis that no documentary evidence has been filed by the assessee which could suggest that the auditor was authorised to prepare the tax audit report and to upload the same. Further, the learned CIT(A) held that no confirmation or affidavit has been filed in this regard from the auditor. The learned CIT(A) also held that the directors of the assessee company cannot take the plea that they were not aware about the requirement or process of filing the tax audit report. Being aggrieved, the assessee is in appeal before us. 6. During the hearing, the learned Authorised Representative ('learned AR') submitted that in the previous year, the assessee filed its return of income and audit report as require....

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....4 of the Act was issued. It is the plea of the assessee that it had appointed an auditor for the purpose of filing the return of income. The auditor had signed the statutory audit report, balance sheet and profit and loss account as per the provisions of the Companies Act, 1956, and also uploaded the same on the ROC Portal. However, due to certain unknown reasons, the auditor failed to prepare and file the audit report as per the provisions of section 44AB of the Act. In the present case, it is no doubt true that no documentary evidence is available on record that the assessee had authorised the aforesaid auditor to prepare its tax audit report under section 44AB of the Act. Further, as noted by the learned CIT(A), there is no confirmation ....