2021 (5) TMI 961 - AT - Income Tax

Penalty imposed u/s. 271B - non filing of audit report within stipulated time - assessee filed two sets of written submissions before the CIT(A) - HELD THAT - The first reason has canvassed by the assessee that the Hard Disk of Computer has been corrupted and data therein is vanished for F.Y. 1999-2000 relating to A.Y. 2000-01 which is the year under consideration but however as rightly pointed by the Ld. DR no supporting evidences filed what steps the assessee has taken for the year under consideration and also for subsequent years. DR demonstrated that there was no evidence before two Revenue authorities below and also before this Tribunal substantiating the steps taken by the assessee supporting the cause for delay canvassed by it. In our opinion, the cause of Hard Disk Drive of Computer system being corrupted and the data is vanished is no valid reason for non-filing of tax audit report. Another reason given by the assessee in its written submissions before the CIT(A) that the Chartered Accountant who looks after all the statutory obligations of the assessee could not able to complete the statutory obligations and compliances u/s. 44AB of the Act in time due to his wife illness - We find force in the submissions of Ld. DR that one Chartered Accountant fails to do compliances, the duty of the assessee to make compliances legal obligations by appointing new Tax Auditor but however the contention of the assessee has due to ill health of wife of Chartered Accountant could not file the tax audit report in time, in our opinion it is also no valid reason that non-filing of tax audit report in time. In the second written submissions dated 17-08-2017, the assessee contends that Shri Sachin Deshpande was appointed as Authorized Representative to look after tax work and he did not file audit report in time and it is the fault of Authorized Representative but not the assessee. No evidence on record either before the two lower authorities or before us that the tax audit report was prepared and the said Authorized Representative Shri Sachin Deshpande could not file the same in time in the proceedings before the AO. Therefore, in our opinion, as rightly pointed by the Ld. DR that the assessee kept on changing its version for causing delay of filing tax audit report and without any evidence substantiating the said reasons. Having perused the entire record and find no valid reasons supporting the reasons stated by the assessee for delay in filing tax audit report, therefore, we do not find any infirmity in the order of CIT(A) and it is justified. Thus, the only ground raised by the assessee is dismissed.

Summary

Issues Involved:
- Appeal against penalty imposed under section 271B of the Income Tax Act for assessment years 2000-01 to 2003-04.

Detailed Analysis:

Issue 1: Penalty Imposed under Section 271B for A.Y. 2000-01
- The assessee, a firm engaged in business activities, failed to file the tax audit report within the stipulated time, resulting in penalty proceedings under section 271B of the Act.
- The AO levied a penalty of ?1,00,000 for the delay in filing the audit report.
- The CIT(A) confirmed the penalty, stating that the assessee failed to provide a reasonable cause for the delay.
- The assessee argued reasons for delay, including the corruption of the computer's hard disk and the ill health of the Chartered Accountant's wife.
- The Ld. DR contended that the reasons provided were insufficient and lacked supporting evidence.
- The Tribunal noted that the reasons presented by the assessee were not valid grounds for the delay in filing the tax audit report.
- The Tribunal upheld the CIT(A)'s decision to confirm the penalty, as the assessee failed to substantiate the reasons for the delay adequately.
- The appeal against the penalty for A.Y. 2000-01 was dismissed.

Issue 2: Appeals for A.Ys. 2001-02, 2002-03 & 2003-04
- The grounds and issues raised in the appeals for subsequent assessment years were found to be identical to the issues in the appeal for A.Y. 2000-01.
- The Tribunal applied the findings from the earlier appeal to the subsequent appeals, leading to the dismissal of all appeals for A.Ys. 2001-02, 2002-03, and 2003-04.
- All four appeals by the assessee were ultimately dismissed by the Tribunal.

This comprehensive analysis covers the penalty imposed under section 271B for A.Y. 2000-01 and the subsequent dismissal of appeals for A.Ys. 2001-02, 2002-03, and 2003-04 based on identical issues and findings.