Case Law Details
Revanta Hometex India Pvt. Ltd Vs CIT (ITAT Mumbai)
ITAT Mumbai held that penalty under section 271B of the Income Tax Act for delay in furnishing of audit report not leviable on account of reasonable cause shown that delay was due to the death of director who was also an accountant of the company.
Facts- The assessee e-filed its return of income on declaring a total loss of Rs. 58,03,371. The return filed by the assessee was selected for scrutiny and statutory notices u/s. 143(2) as well as section 142(1) of the Act were issued and served on the assessee. On the basis of material available on record, AO passed order accepting the explanation provided by the assessee and assessed the total income at Rs. Nil. Since the assessee has filed the return belatedly, the losses claimed were not allowed to be carried forward.
Meanwhile, the penalty proceedings vide notice dated 16/03/2021 issued u/s. 271B r/w section 274 of the Act were initiated for the failure to get accounts audited or failure to furnish the audit report as per the provisions of section 44AB of the Act. The said notice was responded to by the assessee on 03/05/2021. The AO vide penalty order dated 29/10/2021 passed u/s. 271B of the Act did not agree with the submissions of the assessee and levied a penalty of Rs. 1,50,000.
CIT(A) upheld the levy of penalty. Being aggrieved, assessee has preferred the present appeal.
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