LAKSHMANANA NACHAMMAI,MADURAI vs. ACIT NON CORP CIRCLE 2, MADURAI

आदेश / O R D E R

PER ABY T. VARKEY, JM:

These are appeals preferred by the assessee against the order of

the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in

short "the Ld.CIT(A)”), Delhi, dated 04.01.2024 & 15.01.2024 for the

Assessment Years (hereinafter in short "AY”) 2017-18 & 2018-19

respectively.

ITA Nos.542 & 543/Chny/2024 (AY 2017-18 & 2018-19) Lakshmanan Nachammai :: 2 ::

Ld.CIT(A) confirming penalty levied u/s.271B of the Income Tax Act, 1961

(hereinafter in short "the Act”). Brief facts relevant for levy of penalty

u/s.271B of the Act, are that the assessee had filed her return of income

for AY 2017-18 on 14.04.2018, whereas, she had to file the return of

income along with Tax Audit Report (hereinafter in short "TAR") on or

before 30.09.2017. Likewise, the assessee had filed the return of income

for AY 2018-19 on 31.03.2019, whereas, she had to file the return along

with TAR on or before 30.09.2017. The AO found that the assessee had

belatedly filed return of income along with the TAR only on 14.04.2018 for

AY 2017-18 and likewise filed the return of income belatedly along with

the TAR for AY 2018-19 on 31.03.2019 and therefore, having violated the

provisions of Sec.44AB of the Act, he initiated penalty u/s.271B of the Act

for AY 2017-18 on 02.12.2021 and for AY 2018-19 on 18.02.2022 and

thereafter, not satisfied with the reply of the assessee levied penalty of

Rs.1,16,723/- for AY 2017-18 by order dated 28.06.2022 and Rs.1.50

lakhs for AY 2018-19 by order dated 17.08.2022.

who was pleased to confirm both the penalties.

ITA Nos.542 & 543/Chny/2024 (AY 2017-18 & 2018-19) Lakshmanan Nachammai :: 3 ::

on record. We find that the assessee had belatedly filed the return of

income along with TAR for AY 2017-18 on 14.04.2018 and the

Assessment Order u/s.143(3) of the Act was passed on 05.12.2019 for AY

2017-18, which means the TAR was filed well before the assessment was

framed u/s.143(3) of the Act for AY 2017-18; similarly, for AY 2018-19,

assessee had filed return of income along with TAR on 31.03.2019 and

the Assessment Order u/s.143(3) of the Act was passed on 16.06.2020,

which means, the TAR was available with the AO before the Assessment

Order was framed for AY 2018-19. Thus, we find that the non-filing of

the TAR before the 30.09.2017 (AY 2017-18) or before 30.09.2018 (AY

2018-19) were a technical breach; and undisputedly, the assessee filed

the TAR along with the return of income on 14.04.2018 for AY 2017-18

and on 31.03.2019 for AY 2018-19 and that the assessment was framed

by the AO only on 05.12.2019 for AY 2017-18 and on 16.06.2020 for AY

2018-19 on which date undisputedly TAR was very much available on the

file of the AO. In such a scenario, the explanation of the assessee that

the TAR was belatedly filed due to non-finalization of the accounts of the

earlier year and not due to deliberate omission on the part of the

assessee which on the peculiar facts of the case as explained by the

assessee is found to be reasonable; and therefore, we are of the

considered opinion that these are not fit cases for imposing penalty on

ITA Nos.542 & 543/Chny/2024 (AY 2017-18 & 2018-19) Lakshmanan Nachammai :: 4 :: the assessee and for such preposition, we rely on the decision of the Hon’ble Madras High Court in the case of P. Senthil Kumar v. CIT reported in (2019) 416 ITR 336 (Mad.)(HC)

Order pronounced on the 25th day of June, 2024, in Chennai.

Sd/- Sd/- (एबी टी. वक�) (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER

चे�ई/Chennai, �दनांक/Dated: 25th June, 2024. TLN, Sr.PS आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF