VISHWA KUMARI,BARHENI,BAZPUR vs. CIT APPEAL ITD, DELHI

This appeal arises from order dated 15.11.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by Ld. CIT(A)-NFAC, Delhi. This case involves a penalty levied u/s 271B of the Act for not submitting the audit report within the prescribed time limit as per section 44AB of the Act.

The Ld. DR took us through the impugned order and also the various facts as available in the Form 36. It was pointed out that the audit report was completed on 13.01.2021 which was thereafter filed with the return of income on 29.01.2021. The Ld. DR stated that since the audit report was not filed in time hence the penalty was leviable.

We have considered the documents before us and have heard the Ld. DR. We have also perused the rather descriptive grounds of appeal which also contain the arguments of the assessee. Admittedly, the audit report was filed before the completion of assessment and it is also obvious that the assessee thought that an extended period was available to her due to the COVID Pandemic. We are inclined to consider this case within the mandate for section 273B of the Act and grant relief to the assessee as we find that there was “reasonable cause” for the said delay and actually no prejudice has been caused to the Revenue due to this technical breach.

In the result, appeal is allowed.