M/S SHRI SHIVJOT DEVELOPERS & BUILDERS LTD.,KHARAR vs. ITO, W-6(5), MOHALI

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ITA 1330/CHANDI/2018Status: DisposedITAT Chandigarh21 February 2019AY 2014-152 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the fact of whether the tax audit report was e-filed within the specified time limit required verification. Therefore, the issue was set aside to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee, a builder and developer, had a turnover exceeding the threshold requiring a tax audit. The Assessing Officer levied a penalty under Section 271B for late filing of the audit report, which was sustained by the CIT(A).

What were the issues?

Whether the penalty under Section 271B was justified when the assessee claimed to have e-filed the tax audit report within the due date, and if this claim requires further verification.

Which sections of the Income-tax Act were involved?

Section 44AB,Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCHES, ‘SMC’, CHANDIGARH

Before: SHRI N.K. SAINI

Hearing: 21/02/2019Pronounced: 21/02/2019

This is an appeal by the Assessee against the order dt. 06/08/2018 of Ld. CIT(A)-2, Chandigarh.

2.

In the present appeal Assessee has raised the following grounds:

1.

That the order of Ld. CIT(A) is against the law and facts of the case.

2.

That the Learned CIT(A), is not justified in upholding the order of Ld. AO without appreciating the fact that assessee had complied the provisions of Section 44AB and had duly e-filed/furnished the Audit Report in Form No. 3CA vide e-filling Acknowledgment No. 432930841301114 dated 30.11.2014.

3.

That the learned CIT(A) as well as the AO has erred while imposing the penalty u/s 271B of the Act without verifying that the appellant-assessee has duly complied with the provisions of Section 44AB as Audit was done on 25.08.2014 and duly submitting/e-filling/ furnishing the Audit Report before due date. 4. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard and disposed off.

3.

The only grievance of the assessee in this appeal relates to the sustenance of penalty levied by the Assessing Officer under section 271B of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’). 4. Facts of the case in brief are that the assessee is a Builder and Developer of property having a turnover of Rs. 10,99,68,405/- for the year under consideration. 5. The Assessing Officer during the course of assessment proceedings noticed that the assessee filed the return of income alongwith audit report on

05/02/2015 while the specified date for filing the audit report was 30/11/2014. The Assessing Officer levied the penalty of Rs. 1,50,000/- under section 271B of the Act. 6. Being aggrieved the assessee carried the matter to the Ld. CIT(A) who sustained the penalty levied by the Assessing Officer. 7. Now the assessee is in appeal. 8. Ld. Counsel for the assessee submitted that there was no fault of the assessee since the Tax Audit Report was e-filed on 30/11/2014, he furnished the computer generated acknowledgment receipt which is placed at page no. 1 of the assessee’s paper book. It was further submitted that neither the Assessing Officer nor the Ld. CIT(A) appreciated the facts in right perspective. 9. In his rival submission the Ld. DR strongly supported the order of the authorities below. 10. After considering the submissions of both the parties and the material available on the record, I am of the view that this fact requires verification as to whether the assessee e-filed Tax Audit Report with in the specified time limit or not. Therefore, this issue is set aside to the file of the Assessing Officer to be adjudicated afresh in accordance with law by providing due and reasonable opportunity of being heard to the assesse. 11. In the result, appeal of the Assessee is allowed for statistical purposes.

(Order pronounced in the open Court on 21/02/2019.)

Sd/- (N.K. SAINI) VICE PRESIDENT Place: Chandigarh Dated : 21/02/2019 AG Copy to: The Appellant, The Respondent, The CIT, The CIT(A), The DR

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