TaxTMI 
TaxTMI 
2019 (12) TMI 617
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....the Act, i.e., within the due date prescribed u/s 139(1) of the Act for filing return of income. 2. We heard the parties and perused the record. The assessee filed its return of income for AY 2014-15 on 30-03-2015. Even though the tax audit report as required u/s 44AB of the Act was obtained 02-09-2014, the assessee furnished the tax audit report along with return of income on 30-03-2015. As per the provisions of sec.44AB of the Act, the tax audit report should have been furnished to the AO before the due date for filing return of income prescribed u/s 139(1) of the Act. In the instant year, the due date was 30.11.2014. In view of the above said failure, the AO initiated penalty proceedings u/s 271B of the Act. 3. The assessee submitt....
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....also no dispute with regard to the fact that the assessee had obtained tax audit report within the due date prescribed u/s 44AB of the Act. The explanation of the assessee was that it was under the impression that the tax audit report could be filed before 31.3.2015 and further the return of income could not be filed for want of reconciliation of TDS amounts with Form no.26AS. It appears that the assessee was under the impression that the return of income could be filed anytime before 31.3.2015 and the tax audit report could also be filed along with return of income. According to Ld A.R, the assessee was under such bonafide belief and accordingly the explanations furnished by the assessee would constitute reasonable cause within the meaning....
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....onstituted reasonable cause for the delay. He also relied on the recent decision of this Tribunal in the case of Johns Biwheelers vs. ACIT in ITA No.411/Coch/2018 dated 05/02/2019 wherein it was held as under: "7. We have heard the rival submissions and perused the record. In this case, the assessee was required to get his books of account audited and filed along with the return of income u/s. 44AB within the due date of 30/09/2012 for the assessment year 2012-13.. However, the audit report was furnished only on 28/03/2014. The contention of the Ld. AR was that the delay in filing the return of income was due to damage to computer system due to virus infection which is a reasonable cause as prescribed u/s. 273B of the I.T. Act. The....
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....penalty proceedings like that of the assessee. To sum up, we hold that the assessee had committed only technical venial breach for which he cannot be penalized. In view of the above, we are inclined to delete the penalty made by the assessee u/s. 271B of the Act. 8. In the result, the appeal of the assessee is allowed. 8.1 In our opinion, the case of the assessee will squarely fit into the ratio laid down in the above cases cited supra. The assessee has comitted only technical venial breach which does not create any loss to the exchequer. The audit report was filed before the Assessing Officer before the completion of the assessment. The ill health of the partner Shri Naushad S and the malfunctioning of the computer due to....