TaxTMI 
TaxTMI 
2022 (5) TMI 328
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..... Coming to the assessee's sole substantive grievance that both the lower authorities have erred in law and on facts in imposing Section 271B penalty of Rs. 1,50,000/- we note that the CIT(A)'s lower appellate discussion to this effect reads as under: 7.1 Coming to the merits of the case, as mentioned elsewhere in this order, the assessee has not raised any specific grounds except stating that, being a salaried employee, he was unaware of the provisions of section 44AB of the Act. However, I have considered the issue on merits, and find that the contention of the assessee untenable. 7.2 To be precise, it is an undisputed fact that the assessee has indulged in trading in shares & derivatives/F&O and achieved a total....
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....e, was not aware of the provisions of section 44AB of the Act, cannot be construed as reasonable cause within the meaning of section 273B of the Act. 7.5 It has been held by various judicial authorities that reasonable cause means the cause which a reasonable man accepts it as a reasonable one, and which prevents a man of ordinary prudence and average intelligence, acting under normal circumstances, without negligence or inaction or want of bona fides. In the instant case, in the given set of the facts and circumstances, the assessee has failed to adduce any plausible and cogent reasons, along with supporting evidence, demonstrating reasonable cause for his failure to get the accounts audited and not furnishing the same before the ....
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....tc. are explanations for the sake of explanation, which of course, the assessee may take for its own defence. But, such commonplace explanations do not carry any more conviction. 9. It is true that in a majority of cases different Benches of the Tribunal have taken a lenient view in the matter of penalty levied under section 271B especially when the report and the enclosures were available before the Assessing Officer even before completing the assessment. But such a leniency should not be over-exploited to the extent that even section 271B itself might become otiose. In many cases we find that assessees caused delay in filing audit reports and other enclosures and the assessing authority imposed penalties and finally the assessees....
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.... rws 273B of the Act. Accordingly, the AO has rightly imposed the penalty u/s. 271B of the Act. Thus, the grounds of appeal raised by the assessee on this issue are dismissed. 3. Learned Counsel vehemently contended during the course of hearing that this assessee is drawing salary income on regular basis and it was only in the impugned assessment year that he had carried out corresponding transactions requiring audit report u/s. 44AB of the Act. He therefore pleaded assessee's ignorance only as a reasonable cause u/s. 273 for deleting the impugned penalty. 4. We have given our thoughtful consideration to assessee's vehement contentions and find no merit therein. It is an admitted fact that the assessee's case is very well ....