No Section 271B Penalty for delay due to Reasonable Causes

Rasik Nemchand Pethad Vs DCIT (ITAT Mumbai) Introduction: In the recent case of Rasik Nemchand Pethad Vs DCIT (ITAT Mumbai), it was determined that Section 271B penalty is not applicable when there’s a reasonable cause provided for the failure to comply with provisions. The case revolved around the belated submission of a tax audit report by the assessee. Analysis Rasik Nemchand Pethad, an individual engaged in the retail and wholesale trading business, was subjected to a penalty under Section 271B of the Act due to the belated submission of the tax audit report. However, the appellant c...