Kolkata bench of Income Tax Appellate Tribunal (ITAT) recently held that it is the responsibility of the assessee to ensure that the audited books are submitted in stipulated time and that Chartered Accountant (CA) does his job properly.
Assessee in the instant case filed his return of income declaring a total income of Rs.31,980 and the auditor duly signed the audit report for the relevant assessment year. During the course of assessment proceedings Assessing Officer (AO) noted that the assessee failed to get its accounts audited in respect of the previous year relevant to the Assessment Year and he opinioned that the assessee violated the provisions of the said Act, as such, penalty proceedings under section 271B of the Income Tax Act 1961 was initiated.
Before the bench assessee submitted that there was a reasonable cause for not getting books of accounts audited under section44AB of the Act that the assessee could not produce the documents and papers to the tax auditor timely. Therefore, there was a delay in getting tax audited under section 44AB of the Act.
After hearing the rival submissions of both the parties, the tribunal bench comprising of Judicial Member A.T.Varkey and Accountant Member Dr.A.L.Saini observed that while perusing the material facts it is clear that the CA audited the books of accounts of the assessee on correct time and duly signed in the audit report. But the assessee argued that there was a reasonable Cause for not getting books of accounts but has failed to submit that cause with proof documents.
The division bench further analyzed that it is clear that the assessee has failed to submit the relevant papers/documents to the CA to get the accounts audited and also to explain the delay in submitting the books of accounts to his CA. The penalty imposed under section 271B of the Act was, therefore, confirmed.
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