Goodwill Team Papers Ltd Vs ACIT (ITAT Chennai)
ITAT Chennai confirmed penalty imposed under section 271B of the Income Tax Act for non-furnishing audit report, in absence of any reasonable or sufficient cause for not complying with legal provisions of section 44AB of the Income Tax Act.
Facts- The only issue in the appeal of the assessee is as regards to order of the Ld.CIT(A) confirming penalty levied by the Assessing Officer u/s.271B of the Income Tax Act for violation of the provisions of section 44AB of the Income Tax Act for not filing the audit report.
Conclusion-Assessee has not furnished any evidence to show that the assessee was attending to litigations and he was long defaulter running after the funds to procure company inputs. Secondly, the assessee knows the legal provisions for filing of audit report which is evident from the fact that for all the years he has filed audit report from the assessment years from 2014-15 to 2022-23 except AY 2017-18. It means that he did not want to get his audit completed or he knowingly he has not filed audit report for the relevant assessment year.
Held that since, there is no reasonable or sufficient cause shown by the assessee for not complying with the legal provisions of section 44AB of the Act, we confirm the penalty and dismiss the appeal of the assessee.
