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

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.

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.