KNS HAJEE SHAIK LABBAI SAHIB COMPANY PVT LTD,KOZHIKODE vs. THE ITO CIRCLE1 (1) & TPS, KOZHIKODE

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ITA 442/COCH/2023Status: DisposedITAT Cochin23 October 2024AY 2016-17Bench: Shri Satbeer Singh Godara (Judicial Member), Shri Amarjit Singh (Accountant 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 the assessee had provided reasonable cause for the delay in filing the tax audit report due to communication gaps with the auditor's office. Therefore, the penalty levied under section 271B was deleted.

What were the facts?

The assessee filed its return of income along with the tax audit report with some delay. The Assessing Officer completed the assessment, and subsequently, a penalty under section 271B was levied.

What were the issues?

Whether the delay in filing the tax audit report constituted a reasonable cause for the purpose of avoiding penalty under section 271B.

Which sections of the Income-tax Act were involved?

Section 271B,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 Appellant: Shri Shammem Ahmed, Advocate
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. 2016-17 arises against the National Faceless Appeal Centre, Delhi [CIT(A)]’s DIN & Order No. ITBA/NFAC/S/250/2022- 23/1051672102(1) dated 30.03.2023 in proceedings u/s. 250 of the Income Tax Act, 1961 (the Act).

Heard both the parties. Case file perused.

2.

Both the learned representatives vehemently argue against and in support of the lower authorities’ action levying section 271B penalty in assessee’s case; who, inter alia, had filed its return on 28.06.2019 along with tax audit report. It goes without saying that the Assessing Officer completed section 143(3) assessment on KNS Hajee Shaik Labbai Sahib Company Pvt. Ltd. 30.09.2021. Meaning thereby that although there is some delay in filing of the assessee’s return along with tax audit report, she has indeed explained the reasons thereof due to various communication gaps, etc. with the auditor’s office. That being the case, we hold that the assessee has been able to prove the “reasonable cause” u/sec.273B and, therefore, we delete the impugned penalty u/sec.271B of the Act in very terms.

3.

This assessee’s appeal is allowed.

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