2011 (12) TMI 719 - AT - Income Tax

Summary

Issues involved: Appeal against penalty u/s 271B of the Act for assessment year 2004-05.

Summary:

Issue 1: Penalty u/s 271B

The assessing officer levied penalty u/s 271B for delay in filing the audit report. The assessee cited a reasonable cause for the delay, explaining that the accountant responsible for data entry left abruptly without providing necessary information. The Tribunal noted the delay of two months in obtaining the audit report but found that the assessee filed the report along with the return of income. It was established that the delay was beyond the control of the assessee due to the sudden departure of the accountant. The Tribunal held that there was a reasonable cause within the meaning of section 273B of the Act and deleted the penalty of &8377;1 lakh.

Conclusion:

The Tribunal allowed the appeal, deleting the penalty imposed u/s 271B for the assessment year 2004-05.