Case Law Details
Abha Rajesh Kapoor Vs PCIT (ITAT Mumbai)
We find that the issue-in-dispute is whether there was any reasonable cause for failure on the part of the assessee in uploading the Tax Audit Report on the Income-tax portal. In terms of section 44AB, the assessee was required to audit and upload audit report along with return of income. Penalty u/s 271B of the Act is leviable if the assessee fails in auditing its books of accounts if turnover is more than the prescribed limit or fails in uploading the said audit report. On perusal of the order of the Ld. CIT(A), we find that he has rejected the demise of Tax Auditor as reasonable cause in not uploading the Tax Audit Report on portal of the Income-tax Department. This fact of the demise of the tax auditor has not been controverted by the Revenue. In such circumstances failure on the part of the assessee to upload tax audit report without assistance of a Tax Auditor constitute a reasonable cause. It is not the case that accounts were not audited. The assessee has already filed a copy of tax audit report before the Ld. CIT(A). In our opinion, demise of the tax auditor constitute a reasonable cause in not uploaded the tax audit report on Income-tax Portal within the stipulated period. The penalty levied by the Assessing Officer and sustained by the Ld. CIT(A) is deleted in view of reasonable cause under section 273B of the Act.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by the assessee is directed against order dated 17.04.2022 passed by the National Faceless Appeal Centre, Delhi (the Ld. First Appellate Authority) in relation to penalty order for non-furnishing of audit reports which was required in terms section 44AB of the Income Tax Act, 1961 (in short ‘the Act’). The grounds raised by the assessee are reproduced as under:
1. On the facts and in the circumstances of the case and in the law, the learned CIT (A) has erred in confirming penalty of Rs 150000/ imposed by the A O under section 271B of the Act ignoring the reasonable cause as to uploading of tax audit report required login id, password and digital signature of the tax auditor which was not possible after the tax auditor passed away on 05/06/2014 and it was a fit case for waiver of penalty u/s 273B of the Act.
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