Case Law Details
Saravana Foundation Vs ITO (ITAT Chennai)
Against levy of penalty under section 271B of the Act, the assessee has submitted the reasons for the delay in filing the audit report before the ld. CIT(A) that the accounts audited under section 44AB of the Act belatedly as the assessee was not keeping good health and the Accountant has left without prior notice. It was further submission that the books of accounts could not be audited in time even the Accountant took away important letters and documents which hampered the audit work. It was further submission that accounts were audited before filing the return of income for the relevant assessment year and therefore, it was prayed for deleting the penalty levied under section 271B of the Act and relied upon the decision in the case of Ravikumar reported in 29 ITD 537.
The case of the Department is that the assessee has not furnished the tax audit report on or before the due date i.e., 30.09.2011 and therefore, levy of penalty under section 271B of the Act is warranted. The case of the assessee is that tax audit report under section 44AB of the Act was not filed before the due date of filing the same, due to the reasons beyond his control, but it was filed along with the filing of return of income. We also find that in the assessment order under section 143(3) r.w.s. 147 of the Act, the Assessing Officer as admitted that the assessee has filed the return of income along with tax audit report. Considering the explanations that the assessee was prevented by reasonable cause for the delay in filing the tax audit report under section 44AB of the Act, we are of the considered opinion that the penalty levied under section 271B of the Act is liable to be deleted. Accordingly, the penalty levied of ₹.1,07,768/- under section 271B of the Act is deleted.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
The appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-16, Chennai dated 17.09.2018 relevant to the assessment year 2011-12 challenging confirmation of penalty levied under section 271B of the Income Tax Act, 1961 [“Act” in short].
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