ITAT Mumbai Cancels Penalty Under Section 271B for Late Audit Report

Sameer Mavji Patel Vs DCIT (ITAT Mumbai) In the case of Sameer Mavji Patel vs. DCIT, the Income Tax Appellate Tribunal (ITAT) Mumbai dealt with the issue of a penalty imposed under Section 271B of the Income Tax Act for late submission of a tax audit report. Patel, engaged in garment manufacturing, was subjected to a survey under Section 133A. Due to delays in receiving a stock statement prepared during the survey, Patel’s audit report was submitted late, leading to a penalty of ₹1 lakh by the Assessing Officer (AO). Patel argued that the delay in receiving the stock statement hindered...