RAJALAKSHMI: KAIRALI GAS AGENCIES,KOZHIKODE vs. ACIT, KOZHIKODE

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ITA 331/COCH/2023Status: DisposedITAT Cochin23 October 2024AY 2017-18Bench: Shri Satbeer Singh Godara (Judicial Member), Shri Amarjit Singh (Judicial Member)2 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 there was a reasonable cause for the delay in filing the tax audit report, as it was beyond the assessee's control. Therefore, the penalty levied under Section 271B was deleted.

What were the facts?

The assessee filed its tax audit report late, on January 16, 2018, after the due date of February 7, 2017. The return was subsequently filed on January 19, 2018, and a regular assessment was completed.

What were the issues?

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

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Appellant: Shri Reshal, Advocate
For Respondent: Smt. V. Swarnalatha, Sr. D.R
Hearing: 16.08.2024Pronounced: 23.10.2024

O R D E R Per Bench

This assessee’s appeal for A.Y. 2017-18 arises against the National Faceless Appeal Centre, Delhi [CIT(A)]’s DIN & Order No. ITBA/ NFAC/S/250/2022- 23/1050538782(1) dated 09.03.2023 in proceedings u/s. 250 of the Income Tax Act, 1961 (the Act).

Heard both parties. Case file perused.

2.

It emerges at the outset that both the learned lower authorities have levied section 271B penalty is assessee’s case on account of delay in filing the corresponding tax audit report as per the due date of filing return u/s. 139(1) of the Act.

3.

Learned counsel draws our attention to the admitted facts in the case file, inter alia, indicating that the last date for filing the return was 07.02.2017 which followed Rajalakshmi: Kairali Gas Agencies the assessee’s audit report received on 16.01.2018 and thereafter, return was filed on 19.01.2018, which finally culminated in section 143(3) regular assessment on 13.12.2019.

4.

Learned Sr. D.R. could hardly rebut the clinching fact that not only there is absence of any inordinate delay in filing assessee’s tax audit report but also the Assessing Officer has framed the assessment since there exists sufficient time span between the date of submission of tax audit report and assessment in these facts and circumstances. We thus conclude in this peculiar fact that there indeed exists a reasonable cause within the meaning of section 273B of the Act beyond the assessee’s control which prevented it from filing the tax audit report within the due date in foregoing terms. The impugned penalty is directed to be deleted.

5.

This assessee’s appeal is allowed.

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