Case Law Details
Vellakovil Primary Agricultural Cooperative Bank Limited Vs ITO (ITAT Chennai)
ITAT Chennai held that penalty under section 271B of the Income Tax Act cannot be levied for venial technical breach without any mala fide intention of the assessee as tax audit report submitted before completion of assessment proceedings.
Facts- Because of non-filing of return and cash deposits into bank account, the case of the assessee was reopened for AY 2013-14, 2014-15, 2015-16 and 2016-17.
In compliance to the notice u/s 148, the assessee was required to file his ITR within 30 days from receipt of the said notice. However, assessee filed after the expiry of 30 days.
Subsequently, penalty proceedings have been initiated u/s. 271B of the Act for delayed filing of audit report u/s. 44AB of the Act. AO levied penalty of ₹.1,39,859/-, ₹.1,50,000/-, ₹.1,39,543/- and ₹.1,37,202/- for the assessment years 2013-14, 2014-15, 2015-16 & 2016-17 respectively under section 271B of the Income Tax Act. CIT(A) confirmed the same. Being aggrieved, the present appeal is filed.
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