2022 (9) TMI 581

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....017-18 u/s. 271B of the Income Tax Act, 1961 (hereinafter "the Act"), vide order dated 31.12.2021. 2. The assessee has raised the following Grounds of appeal that are as under: 1. The impugned order is illegal, opposed to the facts, contrary to law, without jurisdiction and against the principles of natural justice and therefore liable to be quashed. 2. Tue learned CIT (Appeals) erred in confirming the penalty of Rs.98,475/- without considering the reasonable cause as explained before him and the assessing officer, 3. The learned CIT (Appeals) failed to note that this is the first full year of operation of the company after taking over Dr. Gopala Pillai's Hospital during latter half of the year. 4.....

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....that the reason for delay in getting accounts audited u/s. 44AB, as the assessee's profession was being carried out by the grand children of the founder and subsequently they have converted the same into a private limited company for continuation by the future generation and the assessment year in question is the first full year of the company and they were many formalities to be complied with under the Companies Act and various other laws for smooth transition of the business to the company. Therefore, there was delay in filing the return and tax audit report on time which was accidental and unintentional on the part of the assessee. While passing the order the Ld. CIT(A) observed that, the AO in assessment proceedings stated that the appe....