KERALA FOREST DEVELOPMENT CORPORATION LTD,KOTTAYAM vs. COMMISSIONER OF INCOME TAX, KOTTAYAM

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ITA 146/COCH/2024Status: DisposedITAT Cochin07 November 2024AY 2016-17Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI AMARJIT SINGH (Accountant Member)3 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 due to reasonable cause, considering the assessee is a government body requiring approvals. Therefore, the penalty imposed under Section 271B was deleted.

What were the facts?

The assessee filed its tax audit report on July 6, 2017, significantly after the due date of October 31, 2016. The Assessing Officer completed the assessment on October 24, 2018.

What were the issues?

Whether the delay in filing the tax audit report constitutes a reasonable cause for waiving the penalty under Section 271B.

Which sections of the Income-tax Act were involved?

Section 271B,Section 139(1),Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN

Before: SHRI SATBEER SINGH GODARA & SHRI AMARJIT SINGH

Hearing: 20.08.2024Pronounced: 07.11.2024

This assessee’s appeal, for the assessment year 2016- 2017, arise against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2023- 24/1060556035(1), dated 06.02.2024, in proceedings u/s.271B of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2 ITA.No.146/COCH./2024 2. Coming to the assessee’s sole substantive grievance challenging correctness of both the learned lower authorities action imposing sec.271B penalty herein; clinching facts emerging from the case file indicate that the “due” date of filing return u/sec.139(1) of the Act was 31.10.2016 and the assessee had submitted it’s statutory audit report on 25.02.2017 followed by the tax audit submitted on 06.07.2017; which culminated in the Assessing Officer’s sec.143(3) assessment getting completed on 24.10.2018.

3.

We are of the considered view in this backdrop of the facts that not only the learned Assessing Officer could complete his assessment in assessee’s case very well after submission of the relevant tax audit report but also various circumstances involving of government body which has to abide by the State authority(ies) approvals and sanctions; could not be altogether ruled-out. We thus conclude that the foregoing delay of the assessee’s tax audit report indeed involves “a reasonable cause” within the meaning of sec.273B of the Act. We accordingly delete the impugned penalty u/sec.271B in very terms. Ordered accordingly.

4.

This assessee’s appeal is allowed.

3 ITA.No.146/COCH./2024 Order pronounced in the open Court on 07.11.2024.

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