https://www.taxtmi.com/highlights?id=85179 HC determined that penalty u/s 271B for delayed filing of tax returns and audit report was not warranted. Though delay in Appellant's case exceeded that of sister concerns, legitimate circumstances justified it. Post-filing of accounts for AY 1985-86, raids and seizures impeded timely submission of audit report. Appellant demonstrated diligence by obtaining seized books and engaging chartered accountants. Report was prepared on December 8, 1988, and filed next day. Court considered additional mitigating factors beyond those accepted in sister concerns' cases. Revenue's acceptance of returns indicated no fiscal loss. Mere delay, when explained by genuine difficulties and eventual compliance, does not merit penalty imposition. Appeal allowed in assessee's favor. en-us Sat, 25 Jan 2025 08:26:36 +0530 Sat, 25 Jan 2025 08:26:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=85179 HC determined that penalty u/s 271B for delayed filing of tax returns and audit report was not warranted. Though delay in Appellant's case exceeded that of sister concerns, legitimate circumstances justified it. Post-filing of accounts for AY 1985-86, raids and seizures impeded timely submission of audit report. Appellant demonstrated diligence by obtaining seized books and engaging chartered accountants. Report was prepared on December 8, 1988, and filed next day. Court considered additional mitigating factors beyond those accepted in sister concerns' cases. Revenue's acceptance of returns indicated no fiscal loss. Mere delay, when explained by genuine difficulties and eventual compliance, does not merit penalty imposition. Appeal allowed in assessee's favor. Highlights Income Tax Sat, 25 Jan 2025 08:26:36 +0530 https://www.taxtmi.com/highlights?id=85179