Case Law Details
Madhya Pradesh Audyogik Kendra Vikas Nigam (Indore) Limited Vs DCIT (ITAT Indore)
The assessee has challenged the penalty to the tune of Rs.1,50,000/-levied under Section 271B of the Act. The assessee, a Government company, wherein appointment of Auditor in the case of the appellant was governed by the provision of section 619(2) of the Companies Act, 1956 for the year under consideration. In short, the Auditor, in the case of the appellant was to be appointed by the Comptroller and Auditor-General of India. In this particular case for the year under consideration, the Auditor was appointed late and was entrusted with the work of completing the audit and furnishing the statutory audit report for the relevant financial year. The Auditor completed the audit and finalized their reports only on 19.12.2012 whereas the due date for furnishing of tax audit report in terms of provision of Section 44B of the Act for the year under consideration was 30.09.2012. As the finalization of the statutory audit was made only on 19.12.2012, tax audit report could not be filed within the prescribed date i.e. 30.09.2012 instead of the same could be filed only on 16.05.2013. The crux of the submission made by the assessee is this that the delay in completion of statutory audit constitutes a reasonable cause for the delay in completion and submission of tax audit report under section 44AB of the Act. Such delay is not attributable to the appellant since neither the appointment of the statutory auditor nor the completion of statutory audit was within the control and domain of the appellant. In that view of the matter the case made out by the appellant, when reasonable cause for delay in furnishing of tax audit report as per provision of Section 271B r.w.s. 273B of the Act has been established, we find substance in the argument as advanced by the Ld.AR that the levy of penalty under S.271B of the Act is not sustainable and requires to be deleted.
ITAT held that the impugned penalty, in our considered opinion, is not sustainable in the eye of law and thus, the same is hereby deleted.
FULL TEXT OF THE ORDER OF ITAT INDORE
This bunch of four appeals filed by two assessees are directed against the orders dated 03.12.2018 (in ITA Nos. 153 & 154/Ind/2019) & 05.02.2019 (in ITA Nos. 497 & 498/Ind/2019), passed by the Commissioner of Income Tax (Appeals)-I, Indore arising out of the orders all dated 29.03.2017 passed by the Dy. Commissioner of Income Tax, Circle-3(1), Indore under section 271B of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Years 2012-13 & 2013-14 (in ITA Nos. 153 & 154/Ind/2019) & 2011-12 & 2013-14 (in ITA Nos. 497 & 498/Ind/2019) respectively.
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