2023 (4) TMI 1253

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Income Tax Act, 1961 ["Act" in short]. 2. Brief facts of the case are that the assessee has filed his return of income on 30.12.2017 for the assessment year 2017-18 admitting total income of Rs..7,75,65,120/-. The case of the assessee was selected for complete scrutiny through CASS and notice under section 143(2) of the Act was issued on 10.08.2018 to the assessee which was duly served upon him. After following due procedure, the Assessing Officer has completed the assessment order under section 143(3) of the Act dated 15.04.2019 by accepting the returned income of the assessee. 3. Subsequently, the Assessing Officer initiated penalty proceedings under section 271B of the Act for late filing of audit report under section 44AB of the Ac....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....penalty order, the Assessing Officer had noted that the assessee's gross receipt in the year under consideration were to the tune of Rs..23,14,80,500/-. Therefore, the assessee was required to get his accounts audited under section 44AB of the Act and filed within the due date. Since the assessee has not filed the tax audit report under section 44AB of the Act before the due date, the Assessing Officer levied penalty of Rs..1,50,000/- under section 271B of the Act, which was confirmed by the ld. CIT(A)(NFAC). Before us, it was submitted that the assessment under section 143(3) of the Act has been completed on the basis of the audit report and return of income filed by the assessee and prayed for deleting the penalty levied under section 271....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s and perused the materials available on record and gone through the orders of the authorities below. The assessee supposed to have been filed audit report as required u/s.44AB of the Act, on or before 31.10.2015. However, such audit report has been filed on 05.03.2016, which is before the date of completion of assessment proceedings u/s.143(3) of the Act. In other words, although the assessee has filed tax audit report beyond the stipulated period, but such tax audit report was made available to the AO before he completes assessment proceedings. The assessee has given reasons for delay in filing tax audit report. As per which, the audit of accounts of society done by the Dept. of Cooperative Audit, could not be completed on or before 31.10....