03 October 2021
If any taxpayer who is required to get the tax audit done but fails to do so, the least of the following may be levied as a penalty:
0.5% of the total sales, turnover or gross receipts Rs 1,50,000
However, if there is a reasonable cause of such failure, no penalty shall be levied under section 271B.
So far, the reasonable causes that are accepted by Tribunals/Courts are:
Natural Calamities Resignation of the Tax Auditor and Consequent Delay Labour problems such as strikes, lock-outs for an extended period Loss of Accounts because of situations beyond the control of the Assesses Physical inability or death of the partner in charge of the accounts.
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