Can we ignore penalty under tax audit .

Originally posted by : CA Fresher
	Dear Friends, My one friend  does part time Accounts work .This sept 2012 , because of his busy schedule he fails to attend one of his client  and on 13rd Oct he get the information that the sale of his client exceed 60 lakhs. The client is not ready to pay fine . The Client is individual (prop) and my friend is asking for any solution.  Please suggest if there is any alternative.   Thanks  Gopal Subedi

Section 44 AB says the books ofaccounts of specified assessees to be audited before 30 th september.If the Audit report is on or before 30.09.2012, though the ITR is belatedly filed, there will not be penalty.The dateof Audit report is most important.

Dear Shivaji,

A proprietor does not get his books audited unless required by the income tax law.

So I don't think Mr. CA Fresher that your friend's client has got his books of accounts audited.

Therefore no remedy available for your friend's client.

my qury not yet clear. 

please clear.