SURESH RATILAL LODARIA,ANJAR vs. INCOME TAX OFFICER WARD - 2, GANDHIDHAM., GANDHIDHAM

ITA 389/RJT/2025Status: DisposedITAT Rajkot30 January 2026AY 2013-14Bench: DR. ARJUN LAL SAINI (Accountant Member), DR. DINESH MOHAN SINHA (Judicial Member)7 pages
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What did the Tribunal hold?

The Tribunal held that there was a reasonable cause for the delay in getting the accounts audited and filing the report, as the assessee's father, who handled the accounts, was ill and subsequently died. Since the audit report was submitted before the assessment was finalized and the returned income was accepted without variation, there was no revenue loss, making the default technical and venial. Therefore, the penalty levied under Section 271B was deleted.

What were the facts?

The assessee, an individual engaged in wholesale trading of agricultural goods, failed to file his income tax return for AY 2013-14 and did not get his books of accounts audited under Section 44AB, despite having significant cash deposits. He later filed a return in response to a Section 148 notice, explaining that his father, who managed his accounts, fell ill and passed away, causing a delay in completing the books and audit.

What were the issues?

Whether the assessee had a reasonable cause for the delay in getting his books of accounts audited and filing the audit report, and if the penalty under Section 271B was justified given the circumstances and no loss to revenue.

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB,Section 148,Section 143(2),Section 139(1)

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: DR. ARJUN LAL SAINI & DR. DINESH MOHAN SINHA

For Appellant: Shri Vimal Desai, Ld. A.R
For Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Hearing: 27/11/2025Pronounced: 30/01/2026

Per Dr. Dinesh Mohan Sinha, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY)-2013-14, is directed against the order passed by the Commissioner of Income Tax [(in short “Ld.CIT(A)”] vide order dated 08.05.2025, which in turn assessment order passed by Income Tax Department/Assessing Officer under section 271B of the Income Tax Act, 1961 (in short “the Act”), vide order dated 28.09.2022. 2. Grounds of appeal raised by the assessee are as follows:

“1. The Penalty order u/s/ 271B of the

The order continues below.

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