2023 (10) TMI 456

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....at the assessee is an individual has field his return of income for AY 2018-19 on 17.02.2019, admitting a total income of Rs. 2,91,990/-. During the course of assessment proceedings, the AO noticed that although, the assessee is liable to furnish Tax Audit Report as required u/s. 44AB of the Income Tax Act, 1961 (in short "the Act"), but such Tax Audit Report was not filed on or before due date prescribed under the Act. Therefore, issued a show cause notice and proposed to levy penalty u/s. 271B of the Act, and called upon the assessee to explain 'as to why' penalty shall not be levied for non-furnishing of Tax Audit Report. In response, the assessee submitted that although, the Tax Audit Report was not filed on or before due date for filin....

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....led on 17.02.2019 with a short delay and that delay was also explained by the assessee. Therefore, for delay in filing of Audit Report, penalty cannot be levied. He further submitted that when the Audit Report was made available to the AO before completion of assessment, then, the delay in filing of Audit Report at best can be considered as technical breach, which cannot be treated as fatal for levying penalty u/s. 271B of the Act. In this regard, he relied upon the decision of ITAT Chennai benches in the case of Rajendran Sreedharan v. ACIT in ITA No. 165/Chny/2023 dated 21.04.2023. 5. The Ld. DR, on the other hand, supporting the order of the Ld. CIT(A), submitted that when the statute is provided for due date for filing certain reports....