Tax audit cases

Tax queries 906 views 2 replies

K.HARI

CHARTERED ACCOUNTANT

53 Points Joined April 2010

271B penalty cannot be imposed if tax audit report is obtained within the statutory time though return is filed late. In my view this position needs to be reviewed. According to me, filing of tax audit cases can be delayed beyond the statutory due dates only in genuine cases. Imagine a case for AY 2010-11 where possibly the due date of obtaining a tax audit report would have been 30.9.2010 and the return should have been filed before the extended due date for the said assessment year(normal would be 30.9.10).Here, would it be appropriate to think that you can file the return today, i.e.27.9.11 and have a tax audit report dt.30.9.10 and say that 271B and the provisions u/s 139 are unlinked. Would any right thinking professional be able to give a tax audit report dated 30.9.10 for the AY 2010-11 and file a return of income now,i.e.27.9.11, in a normal case?. I think there has to be a clear understanding on this issue.Opinions are welcome.

Replies (2)

Guest

Even if the return was being filed late i.e after due date, the audit report had to be filed by specified date so that one does not suffer penalty u/s 271 B.

CBDT however made it clear through its Circular 9/2006 dated 10.10.2006 that the audit report need not be furnished separately to the A.O and no penalty u/s 271B shall be imposed for not furnishing the report by specified date.

So penalty u/s 271B imposable only if Audit is done after the specified date (i.e 30th Sep) and on late filing of ROI, there will be interest leviable u/s 234A (that too on late deposit of tax) and penalty of Rs. 5,000 u/s 271F for delay beyond the assessment year.