Sec 44AB

This query is : Resolved

s s r (Querist)
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25 January 2011 Hello Sir

Please say your opinion towards my case soon
in this case assessee has furnished audit report (dated 10-09-2008) and filed retun of income for 56 Lakhs within due date for AY 2008-09

Again he has filed the return revised for the works contract which he has missed and filed for 74 lakhs(56 lakhs + 18 lakhs)
The audit report and statements of accounts dated 12-09-2009 has been issued.
Now the AO has issued notic eU/s 271B

what shall be explanation can be given under this circumstances
Please hurry sir

sivasankar

sivasankar (Expert)
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26 January 2011 Hi,
The AO is correct because your audit report date is after the due date of 31/10/2008.What you should have you done to avoid this?
You should have modified the old audit report in par with the revised return and you could have given an excuse of clerical error for the revised return and could have avoided 271B penalty.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 January 2011 In my view, in case of revised return, the date of filing of return is, the date, when the original return was filed. And such penalty can not be levied in such cases.
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The reply of notice is given in such a way that the original audit report u/s 44AB as well as Return u/s 139(1) has been filed in due course, hence penalty can not be levied.
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Depending upon the nature of works contract, for which no information has been shared by you, it could have been argued to be kept outside the per view of S 44AB , by treating it as covered U/s 44AD.
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It can also be argued that the original turnover, in respect of which report has already been furnished should be ignored while calculating the penalty of 0.5% as assessee has complied with the conditions and is not in default.
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In appeal also your case may favorably considered on the basis of facts of the case.

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