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TMI Blog2004 (9) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... countant Member. - The short issue falling for adjudication in this case is whether or not there was a sufficient cause for delay of four months in obtaining and filing the tax audit report by the assessee. 2. The undisputed material facts are like this. During the relevant previous year, there was a change in management of the assessee-company. The new management took over the business with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We have also perused the records, and duly considered the factual matrix of the case as also the applicable legal position. 4. Section 273B of the Income-tax Act, 1961 inter alia clearly lays done that in case assessee can demonstrate a reasonable cause for his lapse the penalty under section 271B is not to be imposed. There is no dispute about this basic legal position. All that we are, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at should have happened in the ideal circumstances but he has to only ascertain whether there are any real inconsistencies or factual errors in the explanation and whether, in a real life situation, assessee s explanation may hold good. It is also not the law that the assessee has to prove the explanation to the hilt, nor that the Assessing Officer has to accept any explanation no matter how unrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the previous management and there is no material to reject this explanation. Keeping all these factors in mind, we are of the considered view that the explanation of the assessee constituted reasonable cause for delay in compliance with tax audit requirements. The levy of penalty under section 271B, therefore, cannot be sustained. We cancel the same. 6. In the result, the appeal is allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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