THEKKEKUNNATHU MUHAMMED FAYAS,ERNAKULAM vs. CIT (A) NFAC, KOCHI

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ITA 286/COCH/2023Status: DisposedITAT Cochin01 July 2024AY 2017-18Bench: SHRI CHANDRA POOJARI (Accountant Member), SHRI SOUNDARARAJAN K. (Judicial 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 assessee committed only a technical breach, which caused no loss to the exchequer, and therefore, no penalty should be levied. Reliance was placed on various High Court and Tribunal decisions regarding technical breaches and the requirement of obtaining the audit report.

What were the facts?

The assessee failed to file the audit report within the due date of September 30, 2017, submitting it on February 17, 2018. The assessee claimed a technical glitch in the ITBA portal as the reason for the delay.

What were the issues?

Whether a penalty under Section 271B is leviable for a delayed filing of the audit report due to a technical glitch, when the audit report was obtained within the due date and no addition was made to the income.

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, COCHIN BENCH: COCHIN

Before: SHRI CHANDRA POOJARI & SHRI SOUNDARARAJAN K.

Hearing: 01.07.2024Pronounced: 01.07.2024

PER CHANDRA POOJARI, ACCOUNTANT MEMBER:

1.

This appeal by assessee is directed against order of NFAC for the assessment year 2017-18 dated 22.2.2023, wherein he has confirmed the levy of penalty u/s 271B of the Income Tax Act, 1961 (in short “The Act”).

2.

The ld. AO levied penalty u/s 271B of the Act for non-filing audit report within due date. The due date for filing the audit report was 30.9.2017. According to the assessee, it was filed on 17.2.2018 though the audit report got obtained on 30.9.2017.

3.

The contention of the ld. A.R. is that due to technical glitch in the ITBA portal, assessee failed to upload the audit report in time, which is a technical breach which cannot be considered to levy penalty u/s 271B of the Act.

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