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2023 (8) TMI 1271 - AT - Income TaxPenalty u/s 271B - delay in filing tax audit report - as per assessee delay was due to change of auditor - HED THAT - The assessee has placed the reasonable cause for delay in submission of the tax audit report u/s 44AB before the revenue authority. The assessee further produced that the delay, only for this impugned assessment year, not in any other assessment years. The assessee is not a habitual defaulter for filing the tax audit report. Therefore, the change of auditor is one of the valid reasons for delay in filing the tax audit report. There is a sufficient reason for delay in submitting the tax audit report before the authority. Accordingly, the penalty u/s 271B is liable to be deleted. Decided in favour of assessee.
Issues:
The appeal against the order of the ld. Commissioner of Income Tax (Appeals) u/s 250 (6) of the Income Tax Act 1961 for A.Y. 2017-18. Issue 1: Delay in filing tax audit report The assessee was liable to tax audit u/s 44AB of the Act for the impugned assessment year. The tax audit report, although audited on 30.09.2017, was uploaded on 24.01.2018, after the due date of 07.11.2017. The ld. AO imposed a penalty u/s 274 r.w.s. 271B amounting to Rs. 86,140 due to the delay. The assessee contended that the change of auditor led to the delay, and the report was filed within the prescribed time for other assessment years. The ld. AR argued that the change of auditor was a valid reason for the delay, and there was no habitual default in filing tax audit reports. Citing a similar case, the AR emphasized that delay due to change in personnel handling accounts can be a reasonable ground as per u/s 273B of the Act. Decision: The ITAT Amritsar, comprising Dr. M. L. Meena, Accountant Member, and Sh. Anikesh Banerjee, Judicial Member, considered the submissions and documents on record. They found that the change of auditor was a valid reason for the delay in filing the tax audit report for the impugned assessment year. Noting that the assessee was not a habitual defaulter, the Tribunal held that there was sufficient cause for the delay. Consequently, the penalty u/s 271B of Rs. 86,140 was deemed liable to be deleted. The appeal of the assessee was allowed, and the order was pronounced in open court on 11.07.2023.
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