Case Law Details
Tarlok Singh Vs ITO (ITAT Amritsar)
ITAT Amritsar held that non-filing of tax audit report due to technical glitch is the reasonable cause shown. Accordingly, penalty under section 271B of the Income Tax Act not leviable for such non-filing of tax audit report.
Facts- AO has initiated the penalty under section 271B of the Income Tax Act, 1961 for late filing of audit report under section 44AB of the Act against the assessee. AO noted that the gross receipt of the assessee for the year under consideration was Rs. 1,70,27,553/- and hence the assessee was required to get its account audited and liable to file the audit report as required under section 44AB of the Act before the due date. Accordingly, AO has levied minimum penalty of Rs. 1,50,000/- on violation of provisions of Section 271B of the Act for non filing the Tax Audit Report within time as prescribed under the law.
Conclusion- In the present case, the non filing Tax Audit Report before the due date has been a technical glitch and admittedly, the assessee filed the Audit Report under section 44AB. During the course of assessment proceedings and the assessment was framed by the Assessing Officer after considering the Audit Report and statement of account. In our view the explanation filed by the assessee can be accepted as a reasonable cause for his failure to file Audit Report with in time and it is not a fit case for imposing penalty under section 271 B of the Act. Accordingly, the penalty levied under section 271 B of the Act is deleted.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
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