2017 (2) TMI 1227

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....Income Tax Act, 1961; in short "the Act". 2. The assessee has raised following ground of appeal:- ITA No. 646/Ahd/2016:- "That on facts, and in law, the learned CIT (A) has grievously erred in confirming the levy of penalty of Rs. 66,605/- u/s.271B of the Act." ITA No. 647/Ahd/2016:- "That on facts, and in law, the learned CIT (A) has grievously erred in confirming the levy of penalty of Rs. 1,01,170/- u/s.271B of the Act." 3. As the facts in these two cases are similar, we take ITA 646/Ahd/2016 as the lead case and decide both the appeals accordingly. 4. In this case, the assessing officer has received information from CCIT(CPC), Bangalore that the assessee has not uploaded the audit report in f....

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....ronically as prescribed under proviso to sub rule (2) of rule 12 of the I T rules for A. Y. 2013-14 (a) The assessee, who are presently finding it difficult to upload the prescribed reports of audit in the system electronically may also furnish the same manually before the jurisdiction assessing officer within the prescribed due date/ (b) The said report of audit should however be furnished electronically on or before 31/10/2013. (ii) Second, circular:- Section 119 of the income tax act 1961 - Income tax author/ties ~ instructions to subordinate authorities - extension of due date for filing returns of income from 30/09/2013 to 14/10/2013 in case of assessee in the state of Gujarat due to reports of dislocation of....

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....return of income from 30th Sep, 2013 to 14th Oct, 2013 implicit the difficulty in uploading the audit report was not accepted by the assessing officer. Therefore, he imposed a minimum penalty of Rs. 66,605/- for failure to uploading its audit report electronically. Aggrieved against the order of the assessing officer, the assessee filed appeal before the CIT(A). The CIT(A) has confirmed the penalty levied by the assessing officer stating as under:- "2.3. Decision: I have carefully considered the facts of the case, the penalty order and the written submission of the appellant. The AO has levied the penalty for not furnishing of the Audit Report in Form No. 3CB /'3CA / 3CD & 3CEB electronically u/s. 44AB of the I. T. Act....

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.... part of CA and AR of the appellant, it could not be said that there was the reasonable cause left with appellant for not to submit the audit report electronically. In view of the aforesaid discussion, the levy of penalty by the AO is correct and justified for the reason that the appellant has not complied with the requirement of the notifications through which initially the audit report was to be uploaded up to 30/09/2013, and even through the another notification date of uploading extended up to 31/10/2013. Even, there is no justifiable reason with the appellant in making such a legal default. Thus, the levy of penalty by the AO is confirmed. The ground of appeal is accordingly dismissed." 5. During the course of appe....