Does assessee coming under tax audit

Audit was Compulsory . The assessee may now face penalty for concealment of income also in addition to penalty for not getting books of accounts audited. 

Hi Renu,

We follow accrual system of accouting so looking out of bank statement has no relevance.

W.r.t Form 26AS, if your client has taken credit of TDS then he is legal bound to have tax audit (since it will become part.

As you mentioned, your client  has filed his ROI due in time he can revise the ROI any number before expiry of 2 years from the end of FY or before completion of Assessment (Earliest among two above).

Penalty will be levied u/s 271B, However on interpretation of this section we can conclude as;

Its discretionary power upon Assessing Officer to impose penalty, as the word used
in the section is 'may' .

Besides above, section 273B provides that notwithstaning anything contained in section 271B no penalty shall be imposed on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there "was reasonable cause" for the said failure.

So Penal provision u/s 271B is not automatic.  Therefore i belive you can substatiate the AO with your valid reason.

Dont be worry, go ahead with tax audit procedure.   

Seniors are pleased to comment.

Thanks for your early and valuable inputs,

As I have discussed this matter with one of our senior most advocate (he is academically CA,CS,CWA LLM & MBA Finance & Practicing as Tax Advocate/Consultant since 20 years)  according to him, still the assessee can revised his return as per his books of accounts, if there is more TDS on his 26AS and there is no proof of the bill/payment issued/received by him then he can directly approach those people/company who all are issued/paid TDS to him for correction.

Or

He can do  Tax Audit,

When he is confirmed there is no such transavctions over the period on which he as received excess TDS, then he can simply write a letter to his ITO stating all detail and it will be taken care by the department.

Or he can file his revised return without audit, as he has not crossed the bracket.

I need your inputs on this.