3148 KANAKKAMPALAYAM PRIMARY AGRICULTURUAL COOPERATIVE CREDIT SOCIETY,TIRUPUR vs. THE INCOME TAX OFFICER, WARD 1(4) TIRUPUR, TIRUPUR

ITA 1187/CHNY/2025Status: DisposedITAT Chennai26 June 2025AY 2018-19Bench: SHRI SS VISWANETHRA RAVI (Judicial Member), SHRI JAGADISH (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had a reasonable cause for the delay in obtaining the audit report, as the audit process was dependent on the Co-operative Department and the auditor appointed by them, over which the assessee had no control. Therefore, the penalty levied under Section 271B was cancelled.

What were the facts?

The assessee, a co-operative society, filed its return declaring Nil income. The AO levied penalty under Section 271B for failure to get accounts audited within the time prescribed under Section 44AB. The CIT(A) confirmed the penalty, holding that the delay was not a reasonable cause.

What were the issues?

Whether the delay in obtaining the statutory audit report due to the auditor's process constitutes a reasonable cause for cancellation of penalty under Section 271B.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH

Hearing: 17.06.2025Pronounced: 26.06.2025

PER JAGADISH, A.M: Aforesaid appeal filed by the assessee for Assessment Year (A.Y) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 27.02.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 143(3A) & 143(3B) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 18.03.2021. 3148 Kanakkampalaym PACCS :- 2 -:

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The order continues below.

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