No section 271B penalty for delay due to appointment of new Auditor

R.R. Kapoor Vs ITO (ITAT Pune) Introduction: In the recent case of R.R. Kapoor vs ITO, the ITAT Pune has ruled in favor of the assessee, setting aside the penalty imposed under Section 271B. The key contention revolved around the delay in filing the audit report, which the tribunal deemed to have a reasonable cause. Detailed Analysis: R.R. Kapoor admitted to auditing the accounts beyond the due date specified under Section 139(1) of the Income Tax Act. The Assessing Officer (AO) imposed a penalty of Rs.1,50,000 under Section 271B, citing the delayed filing of the audit report. However, Section...