2018 (3) TMI 130

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....a (in short the "Ld AO"). 2. The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in confirming the levy of penalty u/s 271B of the Act in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is a very old assessee carrying on wholesale business in Medicine under the name and style of M/s Hazra Medical Agency. The assessee has been filing his return for the earlier years voluntarily within the due date prescribed for the relevant period. During the financial year 2008-09, the assessee was bed ridden and due to acute sickness followed by waist spondolytis from August 2008 to 2nd week of January, 2009, the assessee was forced to close his normal business acti....

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.... accounts were duly audited within time and ready for furnishing before the Ld. AO as and when called for during the assessment proceedings. Accordingly, the assessee stated that he was prevented from reasonable cause for not furnishing the audit report as he was not able to move physically and his family members were tremendously worried about his acute physical trouble, and that the same also forced the assessee to close his normal business activity from 1st week of August, 2008 to early 2nd week of January, 2009 sustaining huge financial loss. It was also submitted that due to non-payment of monthly salary in time, his accountant also left the job without any notice to that effect. Hence, in these circumstances, it was pleaded that the n....

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....uced any reasons for the delay in submission of audit report and accordingly, the Hon'ble High Court held that there was no reasonable cause adduced by the assessee in terms of Section 273B and confirmed the levy of penalty. We find that in the instant case, the assessee had indeed given substantial reasons for the delay in submission of the tax audit report, even though the said report was duly obtained within time on 30.09.2008. The reasons adduced by the assessee for the delay are not reiterated herein for the sake of brevity. We find from the orders of the lower authorities that the reasons adduced by the assessee were not disbelieved by the Revenue and taking into account the past conduct of the assessee in filing his return in time vo....