M/S NIRVANA NEST BUILDCON PVT. LTD,DELHI vs. THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-14, DELHI

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ITA 5305/DEL/2025Status: DisposedITAT Delhi15 January 2026AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the assessee's counsel presented evidence showing the audit report was filed on 31.03.2019, before the assessment order was passed. Relying on this, the Tribunal found the penalty to be unjustified.

What were the facts?

The assessee's appeal was filed against an order confirming a penalty of Rs. 1,50,000/- under section 271B for non-filing of the audit report. The assessee had admitted a turnover of Rs. 12,65,46,752/-, making it liable for an audit.

What were the issues?

Whether the penalty imposed under Section 271B for non-filing of audit report is sustainable when the report was filed before the passing of the assessment order.

Which sections of the Income-tax Act were involved?

Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI

Before: SHRI SATBEER SINGH GODARA

For Appellant: Shri Yudhister Mehtani, CA
For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 15.01.2026Pronounced: 15.01.2026

Year: 2018-19] M/s Nirvana Nest Buildcon Pvt. The Deputy Commissioner of Ltd. Income Tax, Central Circle-14, Room No.354, 3rd Floor, Income Tax D-35, Indira Enclave, Neb Sarai, Vs New Delhi-110068 Building, E-2, ARA Centre, Jhandewalan Extension, New Delhi-110055 PAN-AACCN3597Q Assessee Revenue Assessee by Shri Yudhister Mehtani, CA Revenue by Ms. Ankush Kalra, Sr. DR Date of Hearing 15.01.2026 Date of Pronouncement 15.01.2026 ORDER PER AMITABH SHUKLA, AM,

This appeal filed by the assessee is against order dated 16.06.2025 of the Learned Commissioner of Income Tax (Appeals)-26, New Delhi, [hereinafter referred to as ‘ld. CIT(A)] arising out of assessment order dated 22.01.2025 passed u/s 271B of the Income Tax Act, 1961 pertaining to Assessment Year 2018-19. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

2.

The only issue contested by the assessee through grounds of appeal no.1 to 4 are regarding imposition of penalty under section 271B of the Act amounting to Rs.1,50,000/- on account of non-filing of the audit report. The ld. AO had made the impugned addition while observing that the assessee has had admitted turnover of Rs.12,65,46,752/- and hence was liable to get accounts audited and file the corresponding report. The ld. CIT(A) confirmed the penalty order on account of non-filing of any submissions by the assessee before him.

3.

The ld. Counsel for the assessee pleaded that it had filed the impugned audit report on 31.03.2019 before the passing of the assessment order. Necessary evidence in this regard was placed for our perusal and consideration.

4.

Per Contra, the ld. DR placed reliance upon the orders of the lower authorities. It was stated that the assessee had not made compliance before the lower authorities.

5.

We have heard rival submissions in the light of material placed on record. We have noted that the assessee has filed the impugned audit report on 31.03.2019 before the passing of the assessment order. Therefore, in the interest of justice, the order of lower authorities is set-aside and the ld. AO is directed to delete the penalty of Rs.1,50,000/-.

6.

In the result, the appeal of the assessee is allowed.

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