M/S. THAKUR SAVADEKAR & CO. PVT. LTD.,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX,

आदेश / ORDER

PER VIKAS AWASTHY, JM

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Pune-5, Pune dated 22.07.2016 confirming levy of penalty u/s.271B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

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submitted that penalty u/s.271B of the Act has been levied for delay in

filing statutory tax audit report in compliance of the provisions of section

44AB of the Act. The ld. AR submitted that before the Authorities below

reasons for delay in filing statutory tax audit report was explained. The due

date for filing return of income and tax audit report for assessment year

2011-12 was 30.09.2011. The tax audit report was filed on 30.12.2011 i.e.

with the delay of 3 months. The delay occurred in filing Tax Audit Report

due to resignation of Statutory Auditors of the assessee-company during

Financial Year 2010-11. New Statutory Tax Auditors were appointed on

12.01.2011. Further, Accountant of the company who was looking after the

finalization of Balance Sheet and income tax matters, had also resigned

from assessee-company on 27.12.2010. It took some time for the new

incumbent to understand financial affairs of the company. This resulted in

delay of 3 months in filing Tax Audit Report. The ld. AR submitted that the

delay in filing Tax Audit Report was not intentional or has any mala-fide

reasons.

vehemently defended the impugned order in confirming levy of penalty

u/s.271B of the Act. The ld. DR submitted that as per provisions of the Act,

any delay in filing of the statutory tax audit report attracts penalty. The

reasons given by the assessee for delay in filing statutory tax audit report

do not constitute ‘reasonable cause’ u/s. 273B of the Act.

sides and have perused the orders of Authorities below. The assessee in

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appeal has assailed levy of penalty of Rs.1,00,000/- u/s.271B of the Act for

delay in filing of the statutory tax audit report by 3 months. Due date for

filing Tax Audit Report was 30.09.2011. However, the same was filed by

assessee on 30.12.2011. A perusal of the impugned order shows that the

delay in filing of statutory Tax Audit Report has been attributed to

resignation of Statutory Tax Auditors and the Accountant of the company

who was looking after the tax matters in Financial Year 2010-11 i.e. the

period relevant to assessment year 2011-12. The new Statutory Tax

Auditors were appointed by the assessee on 12.01.2011. The new

incumbent took some time to understand financial affairs of the assessee-

company. The reason for delay as explained by assessee has not been

disputed by the Revenue. We are of considered view that the reason for

delay in filing Tax Audit Report u/s.44AB of the Act is a ‘reasonable cause’

within the meaning of section 273B of the Act. We find merit in the

submissions of the assessee for quashing the penalty levied u/s.271B of

the Act. We hold and direct accordingly.

assessee is allowed.

Order pronounced on Tuesday, the 06th day of November, 2018.

Sd/- Sd/- R. S. SYAL VIKAS AWASTHY VICE-PRESIDENT JUDICIAL MEMBER

पुणे / Pune; �दनांक / Dated : 06th November, 2018 SB

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आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :

अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals), Pune-5. 4. The Pr. CIT, Pune-4, Pune. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “ए” ब�च, 5. पुणे / DR, ITAT, “A” Bench, Pune. गाड� फ़ाइल / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

�नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.