SAROJ KUMAR SAHOO,JAJPUR vs. DCIT, CUTTACK

Brief facts of the case are that the assessee is a dealer in vehicles and is having agency of Hero Moto Corp. The turnover of the assessee in the year was at Rs.13,99,75,418/-, however, since the assessee’s turnover is exceed the mandatory limited of audit u/s.44AB of the Act, therefore, he is required to e-file the audit report as prescribed u/s.44AB of the Act within the due date i.e. upto 30.09.2016. Since the assessee has uploaded the audit report in Form 3CB through e-filing portal on 31.03.2018, which is beyond the due date as prescribed u/s.139(1) of the Act, therefore, the AO initiated the penalty proceedings u/s.271B of the Act and levied the penalty of Rs.1,50,000/- for not getting the accounts audited within the due date.

Before us, the ld. AR of the assessee submitted that the assessee was suffering from serious illness and was under medical treatment during the period and the business of the assessee was looking after by his employees and, therefore, he could not get his accounts audited within the due date. He further submitted that the assessee was undergone two surgeries one in 2013 and other one in 2018 and due to this prolonged illness, he was not attended the office properly and this is sufficient reason for not getting his accounts audited within the stipulated period.

Per Contra, ld. Sr. DR supported the orders of the lower authorities and vehemently argued that assessee was able to achieve the turnover for Rs.13,99,75,418/- despite of serious illness and, therefore, the reason given is not proper and requested for upholding the penalty levied u/s.271B of the Act.

We have considered the rival submissions and perused the material available on record. In this case, undisputedly the audit report was filed belatedly i.e not within the stipulated time period as provided under the Act. Except stating that the assessee was seriously ill during the period, the ld. AR has not brought on record the necessary details. Further though the assessee was under the medical treatment, however, he was attaining his day-to-day business, which is evident from the volume of turnover achieved by him of more than Rs.13.99 Crores. Once the assessee is able to attend the job as he is the sole person handling and managing the business affairs, it is his duties to get his accounts audited within the stipulated time period. We find no merit in the argument of the ld. AR that due to the sickness the assessee could not get his accounts audited. Looking to these facts, we are of the view that the assessee has no reasonable explanation for not getting his accounts audited and filed within the stipulated time as provided u/s.139(1) of the Act. Accordingly, the penalty levied by the AO u/s.271B of the Act is hereby upheld.

In the result, appeal of the assessee is dismissed.