JUNAID VAVERUKUNNEL PAREED,IDUKKI vs. THE ITO WARD 1 & TPS, THODUPUZHA

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ITA 438/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 found that the assessee had a reasonable cause for the delay due to illness, as per Section 273B. Therefore, the penalty levied under Section 271B was deleted.

What were the facts?

The assessee failed to file their return of income without getting their accounts audited under Section 44AB and submitting the tax audit report by the due date. The assessee pleaded illness as a reasonable cause for this failure.

What were the issues?

Whether the assessee had a reasonable cause for not complying with the tax audit and filing requirements, and if the penalty under Section 271B was justified.

Which sections of the Income-tax Act were involved?

Section 271B,Section 139(1),Section 44AB,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

For Respondent: Smt. V. Swarnalatha, Sr. D.R
Hearing: 22.08.2024Pronounced: 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/250/2023- 24/1051888075(1) dated 05.04.2023 in proceedings u/s. 250 of the Income Tax Act, 1961 (the Act).

Case called twice. None appears at assessee’s behest. We accordingly proceed exparte against the assessee.

2.

We find at the outset with the able assistance coming from the Revenue side that both the learned lower authorities have levied sec.271B penalty in assessee’s case on account of the latter’s failure in filing sec.139(1) return without getting the Junaid Vaverukunnel Pareed accounts audited u/sec.44AB followed by placing the corresponding tax audit report before the prescribed date i.e., 07.11.2017. The assessee on the other hand had pleaded his illness in the corresponding time period and further placed on record his medical report(s) pertaining to the relevant time period.

3.

Faced with this situation, we find no merit in Revenue’s vehement contentions supporting the impugned sec.271B penalty since there exists a “reasonable cause” u/sec.273B indicating circumstances beyond assessee’s control. This penalty stands deleted accordingly.

4.

This assessee’s appeal is allowed in above terms.

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