No Section 271B Penalty for Technical Breach Without Malafide Intent

Chinnayellappa Chandrashekar Vs ITO (ITAT Bangalore) When the tax audit report was made available to AO before completion of the assessment proceedings, then for technical venial breach without any malafide intention, penalty cannot be levied u/s 271B of the Act. In a recent ruling by the Income Tax Appellate Tribunal (ITAT) Bangalore, the court deliberated on the imposition of penalty under Section 271B of the Income Tax Act, 1961, for a technical breach concerning the late filing of an audit report. The case, Chinnayellappa Chandrashekar Vs. ITO, was brought before the tribunal after the app...