Sanghi Textiles Private Limited Vs ITO (ITAT Hyderabad)
Quantum-Pending Misunderstanding Not Fatal – 271B Penalty Remanded: Bona Fide Belief Saves Assessee from Final Blow
Hyderabad Tribunal examined penalty u/s 271B levied at Rs.1,50,000 for delay in furnishing audit report u/s 44AB. AO issued SCN & levied penalty, which was upheld by CIT(A). Assessee submitted before Tribunal that during penalty proceedings it believed quantum appeal outcome would affect penalty, hence did not file detailed factual explanation for delay. Tribunal noted that this bona fide belief pertained only to relevance of quantum proceedings & not to whether audit was required. Tribunal also held that Telangana HC decision in S. Ramkumar Reddy (relied upon by DR) was distinguishable as facts were materially different. In the interest of natural justice, Tribunal restored the matter to AO with a direction to grant one final opportunity to Assessee to file proper explanation & evidence for delay, with instruction that Assessee shall not seek unnecessary adjournments. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal is filed by Sanghi Textiles Private Limited (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”) dated 29.06.2024 for the A.Y. 2013-14.
