Case Law Details
Arka Eduserve Pvt. Ltd. Vs ITO (ITAT Bangalore)
There is no dispute with regard to the fact that the tax audit report was filed along with the return of income, i.e., it was available with the assessing officer before the completion of assessment. Though the Ld CIT(A) has given a finding that the assessee has furnished tax audit reports within the due date in the earlier years, it was not examined as to whether they were furnished along with return of income or separately. There is also no dispute with regard to the fact that the assessee had obtained tax audit report within the due date prescribed u/s 44AB of the Act. The explanation of the assessee was that it was under the impression that the tax audit report could be filed before 31.3.2015 and further the return of income could not be filed for want of reconciliation of TDS amounts with Form no. 26AS. It appears that the assessee was under the impression that the return of income could be filed anytime before 31.3.2015 and the tax audit report could also be filed along with return of income. According to Ld A.R, the assessee was under such bonafide belief and accordingly the explanations furnished by the assessee would constitute reasonable cause within the meaning of sec.273B of the Act.
In the instant case, the audit report was obtained within the due date prescribed u/s 44AB of the Act. The delay has occurred due to delay in filing return of income. The assessee has stated that it was under bonafide belief that the audit report could also be filed before 31.3.2015. There is also no dispute with regard to the fact that the audit report was available with the assessing officer before he completed the assessment. Hence the view taken by the Cochin bench of Tribunal that the delay in furnishing audit report has resulted only in technical venial breach which does not cause any loss to exchequer could be applied here also. Accordingly, following the above said decision of Cochin bench of Tribunal, we set aside the order passed by Ld CIT(A) and direct the AO to delete the penalty levied u/s 271B of the Act for the year under consideration.
FULL TEXT OF THE ITAT JUDGEMENT
The assessee has filed this appeal challenging the order dated 15-05-2017 passed by Ld CIT(A)-12, Bengaluru confirming the penalty levied by the AO u/s 271B of the Act for assessment year 2014-15 for not furnishing the tax audit report as required u/s 44AB of the Act, i.e., within the due date prescribed u/s 139(1) of the Act for filing return of income.
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