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Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: SHRI S.S.GODARA & DR. DIPAK P. RIPOTE
ORDER PER DR. DIPAK P. RIPOTE, AM: These twin appeals are filed by the assessee against the separate orders of ld.Commissioner of Income Tax(Appeal) National Faceless Appeal Centre[ld.CIT(A)], Delhi both dated 09.02.2023 for A.Y.2016-17 and AY 2017-18 emanating from separate orders u/s.271B dated 02/01/2022. The grounds of appeal
raised by the assessee for A.Y.2016-17 are as under :
1. On the facts and in the circumstances of the case and in law the Ld.CIT (A) is not justified in confirming the penalty of Rs. 82,374/- u/s 271B of the Act when the assessee has reasonable cause for non-filing of audit report within prescribed time
ITA No’s.374 & 375/PUN/2023 Suresh Govind Bhoi [A] accordingly penalty levied may please be deleted. 2. On the facts and in the circumstances of the case and in law the Ld.CIT (A) failed to appreciate that there are compelling situation which prevented assessee from filing audit report within prescribed time. 3. The appellant craves, to consider each of the above grounds of appeal without prejudice to each other and craves leave to add, alter, delete or modify all or any of the above grounds of appeal.”
2. The grounds of appeal raised by the assessee for A.Y.2017-18 are as under : “1. On the facts and in the circumstances of the case and in law the Ld.CIT (A) is not justified in confirming the penalty of Rs. 81098/- u/s 271B of the Act when the assessee has reasonable cause for non-filing of audit report within prescribed time accordingly penalty levied may please be deleted.
2. On the facts and in the circumstances of the case and in law the Ld.CIT (A) failed to appreciate that there are compelling situation which prevented assessee from filing audit report within prescribed time.
3. The appellant craves, to consider each of the above grounds of appeal without prejudice to each other and craves leave to add, alter, delete or modify all or any of the above grounds of appeal.” Findings and Analysis :
3. We have heard both these appeals together as the issue involved is same i.e Penalty u/s.271B. We have heard Ld.Departmental Representative(ld.DR) of the Revenue and perused the records. The Assessing Officer(AO) has levied Penalty u/s 271B for AY 2016-17 and AY 2017-18 on account of delay in filling Audit report. The details are as under :
ITA No’s.374 & 375/PUN/2023 Suresh Govind Bhoi [A]
AY Date of Filling Statutory date of filling Audit Report Audit report as mentioned in the Penalty Order 2016-17 26/11/2018 17/10/2016 2017-18 26/11/2018 07/11/2017 4. Before the AO during the Penalty proceedings the Assessee has submitted elaborate reply to explain the medical illness of the Assessee’s CA and Assessee himself. The Assessee has submitted that the CA was suffering from multiple medical conditions i.e.Gout, Degenerative Disc Disease, Bilateral Osteo Arthritis of Knee during the year. The CA was taking treatment at Kolhapur Orthopedic Centre. MRI was done on 31/08/2016. The assessee also had to get admitted in Mahalaxmi Hrudayala Kolhapur on account of medical problems.
On perusal of elaborate reply of the assessee, which is part of the Penalty order, explaining the Medical issues faced by the CA and assessee himself, we are of the opinion that there was reasonable cause for delay in filling the Audit report.
As per Section 273B of the Act, no penalty u/s.271B shall be imposed if assessee proves that there was reasonable cause for the failure. In this case, the assessee has established that there was reasonable cause for delay in filling the Audit Report. Hence, we direct the AO to delete the Penalty u/s.271B for A.Y.2016-17 and ITA No’s.374 & 375/PUN/2023 Suresh Govind Bhoi [A] A.Y.2017-18. Accordingly, grounds of Appeal raised by the Assessee are allowed.
In the result, both appeals i.e. for A.Y. 2016-17 & 2017-18 of the assessee are allowed.
Order pronounced in the open Court on 26th June, 2023.