Penalty not leviable if there is reasonable cause for failure to get accounts audited

ACIT Vs Haneefa Sahib Shajahan (ITAT Chennai) The ITAT, Chennai in the Assistant Commissioner of Income Tax, v. Haneefa Sahib Shajahan, [I.T.A. No.931/Chny/2022 dated January 24, 2023] has upheld the decision of the Appellate Authority, deleting the penalty levied for failure to get accounts audited as per Section 271B of the Income Tax Act, 1961 (“the IT Act”) and for filing tax audit report belatedly, on the grounds that the assessee was prevented by reasonable cause due to its pathetic condition and heavy losses incurred in its business. Facts: Haneefa Sahib Shajahan (“the Respondent�...