Penalty not automatic for audit report delay; 'reasonable cause' excuses, first-time unawareness accepted.

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....The assessee had not obtained and furnished the Audit Report from the Accountant within the due date. The Tribunal held that the levy of penalty u/s 271B is not automatic. Before levying penalty, the concerned officer must find that the failure was without reasonable cause. The initial burden is on the assessee to show reasonable cause for the failure. 'Reasonable cause' means an honest belief founded on reasonable grounds that the action was the right thing to do. In this case, as it was the first year of audit and the assessee had not filed returns previously due to income below the taxable limit, the assessee was unaware of the requirement to file the audit report by the due date. The assessee believed the report could be filed along wit.........