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 the timely finalization of accounts. Although the Commissioner of Income Tax (Appeals) acknowledged the delay, he upheld the penalty, stating that the delay was not fully substantiated. However, the ITAT found that Patel had indeed faced delays in obtaining the necessary stock statement from the Department, which constituted a reasonable cause for the late submission. Consequently, the ITAT canceled the penalty, ruling in favor of Patel.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal filed by the assessee is directed against the order of learned CIT(Appeals)-22, Mumbai dated 25-11-2011 whereby he confirmed the penalty of Rs.1,00,000/- imposed by the AO u/s 271B.
