Tax Court Waives Section 271B Penalty: Delayed Audit Report Filing Justified Due to Raids, Seizures, and Genuine Compliance Efforts.

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....HC determined that penalty u/s 271B for delayed filing of tax returns and audit report was not warranted. Though delay in Appellant's case exceeded that of sister concerns, legitimate circumstances justified it. Post-filing of accounts for AY 1985-86, raids and seizures impeded timely submission of audit report. Appellant demonstrated diligence by obtaining seized books and engaging chartered accountants. Report was prepared on December 8, 1988, and filed next day. Court considered additional mitigating factors beyond those accepted in sister concerns' cases. Revenue's acceptance of returns indicated no fiscal loss. Mere delay, when explained by genuine difficulties and eventual compliance, does not merit penalty imposition. Appeal allowed in assessee's favor.....