2022 (2) TMI 980

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....ome Tax (Appeals) [CIT(A)] has erred both on facts and in law in confirming the action of the AO in levying penalty amounting to Rs. 1,00,000/- under Section 271 BA of the Act on account of not filing the report of the accountant as required by section 92E of the Income Tax Act. 3. On the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals) [CIT(A)] has erred both on facts and in law in confirming the penalty despite the fact that there being a 'reasonable cause' for not filing the report of the accountant as required by section 92E of the Income Tax Act. 4. On the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals) [CIT(A)] has erred both on facts and in law in ....

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....n account of non-filing of report of accountant as required u/s. 92E of the Act. 5. The ld. CIT(A) confirmed the order of the AO holding that as per the mandate of Section 92E, the assessee was to obtain audit report and file it before the due date for filing the return and since, the assessee defaulted the penalty was rightly levied. 6. Heard the arguments of both the parties and perused the material available on record. 7. MTML is responsible to pay salaries to the deputed employees and the Salary, cost of these employees are a charge on the profits of the Mahanagar Telephone Mauritius Limited (MTML). Also, the employees who are deputed to Mauritius are employees of Mahanagar Telephone Mauritius Limited (MTML) and the said employees ar....

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....of the said year and the assessment was completed by the AO on 6th October 2016. No ill intention of MTNL could be attributed of evading tax or non- compliance of the tax laws as the report was filed as required by the authorities. 11. From the above mentioned facts and law, it is evident that MTNL was under bonafide belief that it is not required to file form 3CEB but later on realization of the facts and law, MTNL filed the same with the concerned authority. 12. We have gone through the provisions of the Act. 13. Section 271BA reads as under: "Penalty for failure to furnish report under section 92E. 271BA. If any person fails to furnish a report from an accountant as required by section 92E, the Assessing Officer may direct that su....