Case Law Details
S. A. Poultry Farms Vs ITO (ITAT Chennai)
Introduction: In the case of S. A. Poultry Farms vs. ITO, the Income Tax Appellate Tribunal (ITAT) Chennai addressed the imposition of a penalty under Section 271B for the failure to upload the income tax return electronically. This article provides a detailed analysis of the case and the reasons behind the ITAT’s decision to delete the penalty.
Detailed Subheading-Wise Analysis:
1. Background of the Case: The appeal by the assessee pertains to the Assessment Year (AY) 2017-18 and arises from the order of the Commissioner of Income Tax (Appeals) [CIT(A)], confirming a penalty under Section 271B for Rs.1.50 Lacs. The penalty had been levied by the Assessing Officer (AO) for the failure to comply with tax audit requirements.
2. Failure to Upload Return Electronically: The assessee, a partnership firm engaged in the poultry farm business, filed its Tax Audit Report electronically in response to a notice under Section 142(1). However, due to technical issues, the return of income could not be uploaded electronically as required by law. The AO, on 22-11-2019, assessed the income on a best judgment basis and imposed a penalty under Section 271B.
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