DEEPAK DHANWANI,ADYAR, CHENNAI vs. ITO,NON CORPORATE WARD 8(1), CHENNAI

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ITA 509/CHNY/2023Status: DisposedITAT Chennai01 June 2023AY 2018-192 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 condoned the delay in filing the appeal. Following a coordinate bench's decision, the Tribunal held that the penalty under Section 271B was not leviable in this case.

What were the facts?

The assessee filed a Tax Audit Report after the due date, leading to a penalty under Section 271B. The delay was attributed to the accountant leaving the job, and later to the assessee's wife's medical condition.

What were the issues?

Whether penalty under Section 271B is leviable when the Tax Audit Report is filed belatedly along with a belated return of income.

Which sections of the Income-tax Act were involved?

Section 271B,Section 139(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, CHENNAI

Before: HON’BLE SHRI V. DURGA RAO, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

माननीय +ी वी. दुगा1 राव, �ाियक सद2 एवं माननीय +ी मनोज कुमार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ (िनधा1रणवष1 / Assessment Year: 2018-19) Shri Deepak T. Dhanwani, ITO बनाम/ 122A/7A, Sardar Patel Road, Non-Corporate Ward-8(1) Vs. Adyar, Chennai-600 020. Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No.AFMPD-4250-J (अपीलाथ�/Appellant) : ("#थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri M. Karunakaran (Advocate)- Ld AR "#थ�कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 31-05-2023 घोषणाकीतारीख/Date of Pronouncement : 01-06-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271B for Rs.1,11,343/- for Assessment Year (AY) 2018-19, the assessee is in further appeal before us. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 22-11-2022 in the matter of impugned penalty levied by Ld. Assessing Officer [AO] u/s. 271B of the Act vide order dated 15-12-2021. In the penalty order, the penalty has been levied on the finding that the assessee furnished Tax Audit Report u/s 44AB on 30-03-2019 which is after specified due date. During appellate proceedings, the assessee attributed the delay to the fact that the accountant who was handling the accounts suddenly left the job which led to the delay. However, Ld. CIT(A) confirmed the penalty against which the assessee is in further appeal before us.

2.

The registry has noted a delay of 93 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of an affidavit filed by the assessee wherein it has been stated that delay took place due to adverse medical conditions being faced by assessee’s wife. Though Ld. Sr. DR opposed condonation of delay, however, the bench formed an opinion that the delay was to be condoned. Accordingly, we proceed to adjudicate the appeal on merits.

3.

From the record, it emerges that the assessee has furnished the Tax Audit Report along with return of income filed u/s 139(4). In such a case, the decision of coordinate bench of this Tribunal in Shri Ramunaicker Raja vs. ACIT (ITA No. 603/Chny/2022 dated 15-02- 2023) would support the case of the assessee wherein, on similar facts, it was held that it was not a fit case for levy of penalty u/s 271B. Respectfully following the same, we delete the impugned penalty.

4.

The appeal stand allowed. Order pronounced on 01st June, 2023. Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) �ाियक सद2/JUDICIAL MEMBER लेखासद2 / ACCOUNTANT MEMBER चे6ईChennai; िदनांकDated : 01-06-2023 DS आदेशकीXितिलिपअ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant2. ��यथ�/Respondent 3. आयकरआयु�त/CIT4. �वभागीय��त�न�ध/DR 5. गाड�फाईल/GF

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