S. MANGILAL,CHENNAI vs. ACIT, CENTRAL CIRCLE-3(3), CHENNAI

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ITA 949/CHNY/2023Status: DisposedITAT Chennai28 November 2023AY 2017-182 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the audit was completed before the due date and the delay was only in uploading, it was not a fit case for levying the penalty. The appeal relied on a previous Tribunal decision with similar facts.

What were the facts?

The assessee failed to upload the Tax Audit Report within the stipulated extended due date, although the audit itself was completed before that date. The delay was solely in the uploading of the report.

What were the issues?

Whether a penalty under Section 271B is leviable for delay in uploading a Tax Audit Report when the audit itself was completed within the due date.

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “बी” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा*रण वष* / Assessment Year: 2017-18) Shri S.Mangilal ACIT बनाम No.1/223, Market Road, Central Circle -3(3), / Vs. Kelambakkam, Chennai-603 103. Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAMPM-7950-P (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri S.P.Chidambaram(Advocate)-Ld.AR � थ�कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)-Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 28-11-2023 घोषणाकीतारीख /Date of Pronouncement : 28-11-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aggrieved by confirmation of penalty u/s 271B for Rs.1.36 Lacs vide impugned order dated 05-04-2022, the assessee is in further appeal before us. The said penalty is levied for failure to get accounts audited and filing of Tax Report Audit u/s 44AB within stipulated time.

2.

The Ld. AR submitted that Audit was completed within extended due date and the delay has taken place only in uploading of the same. The Ld. AR relied on the decision of this Tribunal in Shri Manipillai Saravanan (ITA No.497/Chny/2023 dated 25.09.2023) rendered on similar factual matrix. The Ld. Sr. DR submitted that the assessee could not demonstrate any reasonable cause for default. Having heard rival submissions, our adjudication would be as under. 3. The impugned penalty stem from the fact that the assessee was assessed u/s 143(3) assessing total income of Rs.40.04 Lacs. However, it was noted that the stipulated extended date for filing of return of income along with Tax Audit Report was 07-11-2017. However, the assessee uploaded Tax Audit Report dated 28-10-2017 only on 01-02- 2018. Therefore, impugned penalty was levied by Ld. AO u/s 271B. The Ld. CIT(A) confirmed the same on the ground that the assessee could establish reasonable cause. Aggrieved, the assessee is in further appeal before us. 4. The undisputed fact that emerges is that the extended due date for filing Tax Audit Report for this year was 07-11-2017. The assessee has got the accounts audited before that date. There is delay only in uploading of the same. Therefore, in our considered opinion, this is not a fit case for levy of impugned penalty. The cited decision of Tribunal is on the same lines. By deleting the impugned penalty, we allow the appeal. 5. The appeal stand allowed. Order pronounced in open court on 28th November, 2023.

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