https://www.taxtmi.com/caselaws?id=763296 The ITAT Bangalore ruled in favor of the assessee regarding penalty under section 271B for delayed filing of audit report. The Tribunal held that penalty levy is not automatic and requires proving absence of reasonable cause. The assessee, being a first-time auditee unaware of separate due dates for audit reports, acted in good faith believing the report could be filed with the income tax return. Since the audit report was available before assessment completion, constituting only a technical breach without revenue loss or malafide intent, the penalty was deleted and the assessee's appeal was allowed. en-us Fri, 29 Nov 2024 00:00:00 +0530 Tue, 17 Dec 2024 08:42:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763296 The ITAT Bangalore ruled in favor of the assessee regarding penalty under section 271B for delayed filing of audit report. The Tribunal held that penalty levy is not automatic and requires proving absence of reasonable cause. The assessee, being a first-time auditee unaware of separate due dates for audit reports, acted in good faith believing the report could be filed with the income tax return. Since the audit report was available before assessment completion, constituting only a technical breach without revenue loss or malafide intent, the penalty was deleted and the assessee's appeal was allowed. Case-Laws Income Tax Fri, 29 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763296