Case Law Details
Amit Kumar Chatterjee Vs ITO (ITAT Kolkata)
In the recent Income Tax Appellate Tribunal (ITAT) ruling, Amit Kumar Chatterjee vs Income Tax Officer (ITO), the court ruled that penalties could not be imposed if the assessee provides reasonable cause for delays in filing books of accounts, under Section 273B of the Income Tax Act, 1961.
The appeal pertained to the Assessment Year 2016-17, where the assessee filed his return late by one day, leading to a penalty imposition. Mr. Chatterjee argued that the delay occurred due to the illness of his auditor and technical issues with the income tax portal.
In a significant move, the ITAT considered these factors as a ‘reasonable cause,’ stating that, due to these circumstances, the assessee was prevented from filing the audit report in time. Consequently, it overturned the penalty of Rs. 1,50,000/- imposed by the lower authority under section 271B of the Act.
The ITAT’s decision in Amit Kumar Chatterjee vs ITO sets an important precedent, indicating that unavoidable circumstances that delay audit report submissions can be viewed as ‘reasonable causes’ under Section 273B.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
