TaxTMI 
TaxTMI 
2023 (2) TMI 765
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....e Act by the ITO Ward 1(1), Nashik [for short "AO"] for assessment year [for short "AY"] 2017-18. 2. Concisely stated the facts of the case are; 2.1 The assesse is a resident private limited company has for AY 2017-18 e-filed its return of income [in short "ITR"] on 31/03/2018 whereas the tax audit report u/s 44AB of the Act [in short "TAR"] was e-filed prior to filing of ITR on 29/03/2018. The assessment in this case was completed u/s 143(3) of the Act triggering the penalty proceedings u/s 271B for non-furnishing of TAR within the prescribed time limit u/s 44AB r.w.s. 139(1) of the Act. 2.2 For the reason the penalty proceedings remained unresponded by assessee company, the Ld. AO proceeded with the material available on records and af....
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....from the application of penal provisions. It is further submitted that, the appellant in clear terms failed to comply with the provisions of section 44AB and further failed to prove reasonable cause with the evidential material, hence penalty deserves to be confirmed. 4. We have heard the rival contentions of both the parties; and subject to the provisions of rule 18 of Income Tax Appellate Tribunal Rules, 1963 [for short "ITAT, Rules"] perused the material placed on records till the date of conclusive hearing and duly considered the facts of the case in the light of settled legal position and are forewarned to the parties present. 5. Undisputedly, the appellant for the impugned AY having business turnover exceeding prescribed limit has f....
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....th the mandates of section 44AB of the Act, we have noted all the reasons furthered by the appellant during assessment and appellate proceedings and find them 'reasonable' and convincing for the purpose of section 273B so has to hold the imposition of penalty as unjustified in the light of Hon'ble Supreme Court decision laid in "Hindustan Steel Ltd. Vs State of Orissa" reported in 1970 AIR 253 (SC) as; An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceedings, and penalty will not ordinarily be imposed unless the party obliged, either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. Pena....