Case Law Details
Sebastian Joseph Vs ACIT (ITAT Pune)
The issue in the present appeal relates to the exigibility of penalty u/s 271B for failure of the assessee to get accounts audited in respect of the previous year relevant to the assessment year under consideration as required u/s 44AB and furnished to the Assessing Officer before specified due date i.e. due date for filing the return of income. It is pertinent to note that w.e.f. 01.07.1995, it obligatory on behalf of the assessee that tax audit report has to be got completed by specified date, as specified in clause (ii) of section 139(1) and tax audit report has to be furnished by such specified date. However, admittedly, in the present case, it is the case of the appellant that the tax audit report as required to be filed along with return of income though the tax audit report was obtained before the specified date. The submission of the assessee that the audit report was obtained before the specified date remains uncontroverted. The very object behind enactment of the provisions of section 44AB is only to enable the Assessing Officer to determine the correct taxable income in accordance with the provisions of the Act. The fact that the returned income was accepted by the Assessing Officer goes to show that no prejudice was caused to the Assessing Officer on account of delay in submission of tax audit report. The delay in submission of the tax audit report is mere only technical breach of law, which, in our considered opinion, does not warrant levy of penalty u/s 271B of the Act. In the circumstances, we direct the Assessing Officer to delete the penalty of Rs.1,50,000/- levied u/s 271B of the Act.
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-11, Pune [the ‘CIT(A)’] dated 30.05.2022 for the assessment year 2016-17.
2. The appellant raised the following grounds of appeal :-
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