Shrishaila Mallikarjun Traders Vs ITO (ITAT Bangalore)
ITAT Bangalore held that penalty under section 271B of the Income Tax Act for delay in uploading audit report set aside as reasonable cause shown and there was only technical breach without any loss to exchequer of the Government.
Facts- Assessee is a partnership firm carrying on business of Petroleum Products like Petrol, Diesel, Lubricants, Tyres and Tubes. Assessment proceedings of the assessee were reopened on the basis of information pertaining to cash deposits during the demonetization period i.e. during FY 2016-17 amounting to Rs.4,31,84,135/-. Thereafter, considering the return of Income filed by the assessee in pursuance to notice u/s 148 of the Act declaring total income of Rs.1,57,170/-, the returned income was accepted by AO considering the facts of the case, nature of business and other available details. Further, the penalty proceedings for non-filing of return of income u/s 271F of the Act and penalty proceedings u/s 271B of the Act for not auditing the books of accounts as per the provisions of section 44AB of the Act is also initiated on or before the completion of the assessment proceedings.
After examining the submissions, AO held that it is a fit case for levy of penalty u/s 271B of the Act and accordingly levied the penalty of Rs.1,50,000/-. CIT(A) upheld the action of AO. Being aggrieved, the present appeal is filed.
