Case Law Details
M/s. Giral Lignite Power Ltd. Vs. ACIT (ITAT Jaipur)
In the instant case, the C&AG has appointed the statutory auditor of the assessee company on 02.09.2014 and after confirmation of remuneration and other terms of appointment by the Board of Directors, the statutory auditors have given their acceptance on 22.09.2014. The statutory audit was thereafter undertaken and the statutory auditors have given their audit report on 15.01.2015 and thereafter the tax auditor completed the tax audit on 28.09.2015. We therefore find that the facts of the present case are pari-materia to the facts in case of the M/s RRVUNL Vs. ACIT (supra) wherein the Co-ordinate Bench has held that where there is a delay in completion of statutory audit, there exist a reasonable cause for the delay in completion of tax audit and issuance of tax audit report. The ratio of the said decision equally applies in the instant case as the accounts of the assessee company are subject to statutory audit and once the statutory audit is completed, the tax audit can be initiated. Further, we find that under similar fact pattern, there was delay in completion of tax audit for the previous AY 2013-14 and the penalty proceedings so initiated u/s 271B were dropped by the Assessing officer himself. In light of the same, the penalty so levied under section 271B is hereby directed to be deleted.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the assessee against the order of ld. CIT(A), Ajmer dated 16.10.2018 for AY 2014-15 wherein the sole ground of appeal is as under:-
“The ld. CIT(A) has erred on facts and in law in confirming the levy o f penalty of Rs. 1,50,000/- u/s 271B of the IT Act, 1961. ”
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