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Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI R.S. SYAL, VP & SHRI VIKAS AWASTHY, JM
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’).
2 ITA No.2304 /PUN/2016 A.Y.2011-12
Shri C.H. Naniwadekar appearing on behalf of the assessee
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.
On the other hand, Shri Mahadevan representing the Department
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.
We have heard the submissions made by representatives of rival
sides and have perused the orders of Authorities below. The assessee in
3 ITA No.2304 /PUN/2016 A.Y.2011-12
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.
In the result, the impugned order is set aside and appeal of the
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
4 ITA No.2304 /PUN/2016 A.Y.2011-12
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.