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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by ld. CIT(A)-2, Nashik on 02.01.2019 confirming the penalty of Rs.1,25,486 imposed by the Assessing Officer (AO) u/s 271B of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟). 2. Briefly stated, the facts of the case are that the assessee is a firm engaged in the business of Labour work contracts. Return was filed declaring total income at Rs.1,47,710. The AO observed that the gross receipts of the assessee were to the tune of Rs.2,50,97,142 and the assessee had failed to get the accounts audited u/s 44AB and furnish the same. He, therefore, imposed penalty u/s 271B of the Act, which came to be affirmed in the first appeal. Aggrieved thereby, the assessee has approached the Tribunal.
We have heard the ld. DR and perused the record. There is no appearance from the side of the assessee despite notice. As such, we are proceeding to dispose of the appeal ex parte qua the assessee. It is seen that there is an infringement of provisions of section 44AB inasmuch as the assessee failed to get the accounts audited and furnish the necessary report before the stipulated period. The assessee pleaded a reasonable cause before the AO that the audit could not be carried out because of ill-health of his wife, which further worsened the family problems. Section 271B is subject to provisions of section 273B which provides that in case of a reasonable cause, penalty under the concerned section need not be imposed. In the given set of facts and circumstances, we are satisfied that there was a reasonable cause which prevented the assessee from complying with the necessary provisions in getting the accounts audited and furnishing the report to the AO before the due date. We, therefore, order to delete the penalty.
In the result, the appeal is allowed. Order pronounced in the Open Court on 29th November, 2022.
Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; नदिधांक Dated : 29th November, 2022 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to:
1. 1. अपीलधर्थी / The Appellant; प्रत्यर्थी / The Respondent; 2.
3. The CIT(A)-2, Nashik 4. The Pr.CIT-2, Nashik, 5. नवभधगीय प्रनिनिनर्, आयकर अपीलीय अनर्करण, पुणे “B” / DR „B‟, ITAT, Pune 6. गधर्ा फधईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अनर्करण ,पुणे / ITAT, Pune
Date 1. Draft dictated on 29-11-2022 Sr.PS 2. Draft placed before author 29-11-2022 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.