2020 (4) TMI 719

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....under section 271B as well as 271F of the Income Tax Act, 1961 ["Act" in short]. First we shall take up the appeal filed against levy of penalty under section 271B of the Act for adjudication. 2. Brief facts of the case are that the assessee filed its return of income for the assessment year 2010-11 on 19.05.2011 declaring an income of Rs..2,28,78,320/-. The assessment under section 143(3) of the Act was completed on 24.01.2013 assessing the total income of 2,28,78,321/-. However, the Assessing Officer levied penalty under section 271B of the Act of Rs..1,00,000/- as the assessee has not got its accounts audited by an Accountant and furnished the tax audit report as per section 44AB of the Act before the specified date i.e., 15.10.2010 a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... However, the Assessing Officer mechanically levied penalty under section 271B of the Act for the reason that the assessee has not filed the tax audit report under section 44AB of the Act by ignoring the reasonable cause for the late filing of the tax audit report. It was emphasized that being a corporation functioning under the Govt. of Tamil Nadu, because of shifting of the office to the present location as well as belated conduct of the AGM, where high officials of the Government has to participate coupled with misplacement of some of the crucial records, the assessee was unable to obtain and file the tax audit report in time. By overlooking the provision of section 273B of the Act, where there is valid reasonable cause for delay in obt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ilure. 4.1 There is no definition for the term "reasonable cause" and it has to be decided upon the facts of each case. In this case, the assessee, being a corporation, has given valid reasons for the delay in obtaining and filing of the tax audit report. Moreover, the authorities below have not pointed out any continuous and repeated defaults justifying the penalty. Thus, in view of the provisions of section 273B of the Act and considering the facts and circumstances, we set aside the order of the authorities below and delete the penalty levied under section 271B of the Act. Thus, the appeal filed by the assessee stands allowed. 5. The assessee also preferred an appeal against levy of penalty of Rs..5,000/- under section 271F of the ....