No Section 271B Penalty for Delayed Audit Report due to IBC Proceedings

Bhushan Aviation Limited Vs ACIT (ITAT Delhi) Introduction: Bhushan Aviation Limited’s appeal in ITAT Delhi brings to focus the complexities surrounding penalties imposed under section 271B of the Income Tax Act. Central to this dispute is the levy of a penalty due to the delay in filing an audit report, attributed by the company to the insolvency proceedings of its holding company. Analysis: The essence of the appeal lies in the contention that the imposed penalty of INR 1,50,000 for a delayed audit report was not warranted. The primary reasoning the company provided for this delay was ...