Penalty u/s 271B Deleted Due to Reasonable Cause for Delay: ITAT Chennai

Shark Dyeing Mills Vs ITO (ITAT Chennai) Reasonable Cause Saves Assessee: Penalty u/s 271B Deleted for Delay in Filing Audit Report The Chennai Bench of the ITAT, in Shark Dyeing Mills v. ITO (AY 2018-19), deleted the penalty of ₹1.50 lakh levied under section 271B for delay in furnishing the tax audit report. The Tribunal accepted the assessee’s explanation that its operations were severely disrupted due to liquidation proceedings before the NCLT and the prolonged illness and subsequent death of the partner managing accounts. The ITAT held that these circumstances constituted “reasonabl...