Balaji Logistics Vs ACIT (ITAT Chennai)
The Income Tax Appellate Tribunal (ITAT) Chennai delivered a significant judgment in the case of Balaji Logistics vs ACIT concerning the assessment year 2015-16. The case centered around the imposition of a penalty under Section 271B of the Income Tax Act for the delayed filing of the tax audit report.
Background of the Case
Balaji Logistics, a firm engaged in logistics services, filed its return of income for the assessment year 2015-16 on March 28, 2016, declaring a total income of Rs. 56,69,650. The case was selected for scrutiny, and the assessment was completed under Section 143(3) on November 22, 2017, accepting the returned income. However, the Assessing Officer (AO) initiated penalty proceedings under Section 271B for the delayed filing of the tax audit report in Form 3CB, as required under Section 44AB of the Act. The penalty of Rs. 1,50,000 was subsequently levied.
Grounds of Appeal
1. The appellant argued that the penalty imposed by the AO and upheld by the Commissioner of Income Tax (Appeals) [CIT(A)] was unjustified.
2. The appellant claimed that the delay in filing the audit report was due to the partner Madhivanan’s health issues, which constituted a reasonable cause under Section 273B.
3. The appellant emphasized that the audit report was made available during the scrutiny assessment proceedings, and the returned income was accepted by the AO.
4. The appellant contended that the penalty was a discretionary power and should not be exercised for a venial technical breach without any mala fide intention.
Arguments and Counterarguments
