N1915 VELLALAPATTY PACCS LTD.,SALEM vs. ITO, WARD-1(6), SALEM

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ITA 2495/CHNY/2024Status: DisposedITAT Chennai16 December 2024AY 2018-191 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the delay in filing the Tax Audit Report was beyond the control of the assessee. This was supported by an order allowing condonation of delay in filing the return of income under section 119(2)(b), which accepted that the delay was beyond the assessee's control. Therefore, there was a reasonable cause for the late filing.

What were the facts?

The assessee is in appeal against a penalty levied under section 271B for failure to get accounts audited and file the Tax Audit Report within the stipulated time for the Assessment Year 2018-19. The penalty was confirmed by the CIT(A). The assessee's auditor received the audit report from the Co-operative department on 06-03-2019, after which the return of income and Tax Audit Report were filed.

What were the issues?

Whether there was a reasonable cause for the delay in filing the Tax Audit Report, which led to the levy of penalty under section 271B.

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB,Section 119(2)(b),Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271B for Rs.1.20 Lacs for Assessment Year (AY) 2018-19, the assessee is in further appeal before us. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 29.08.2024 in the matter of impugned penalty levied by Ld. Assessing Officer [AO] u/s. 271B of the Act vide order dated 20.01.2022. The said penalty is levied for failure to get accounts audited and filing of Tax Report Audit u/s 44AB within stipulated time.

2.

The AR submitted that the delay was beyond the control of the assessee since only after receipt of Audit Report of Co-operative Department, the auditor could prepare and file Audit Report for this year. The Ld. AR pointed out that the Audit Report dated 18-12-2018 was received from Co-operative department on 06-03-2019. Thereafter, the return of income was prepared and filed along with Tax Audit Report u/s 44AB. Our attention has been drawn to order of appropriate authority dated 30-12-2023 in the petition filed by the assessee u/s 119(2)(b) seeking condonation of delay in filing of return of income to lay claim on deduction u/s 80P. This petition has been allowed by appropriate authority accepting the fact that the delay was beyond the control of the assessee. Considering this fact alone, it could be said that there was a reasonable cause for late filing of Tax Audit Report. Accordingly, the impugned penalty is liable to be deleted. We order so.

3.

The appeal stand allowed in terms of our above order. Order pronounced on 16th December, 2024. (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 16-12-2024 DS आदेशकीSितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु</CIT Salem. 4. िवभागीय"ितिनिध/DR 5. गाडAफाईल/GF

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