BHARAT MIRPURI,CHENNAI vs. ITO NON CORPORATE CIRCLE 9 (1), CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -10, Chennai, dated 21.12.2017, for the assessment year 2013-14, confirming the penalty levied by the Assessing Officer under Section 271B of the Income-tax Act, 1961 (in short 'the Act').

We heard Shri Ananddevkumar, the Ld. representative for the assessee and Shri R. Clement Ramesh Kumar, the Ld. Departmental Representative. Admittedly, the audit report was filed belatedly before the Assessing Officer. Even though it is mandatory for the assessee to file the audit report, the time limit for filing the same is discretionary. The object of filing the audit report is to assist the Assessing Officer in completing the assessment for determination of taxable income. Since there was no impediment in determining the taxable income, and the audit report was very much available before the Assessing Officer before completion of assessment, this Tribunal is of the considered opinion that it is not a fit case for levy of penalty under Section 271B of the Act.

The assessee also claimed before the CIT(Appeals) that he was sick and there was some delay in getting the audit report also.

In the result, the appeal filed by the assessee is allowed.