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TMI Blog2012 (4) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... ion caused. Even though evidences cannot be produced in all cases, the explanations offered by an assessee must be plausible and convincing and answerable to the reasoning of a man of ordinary prudence. We are not expecting scientific reasons with mathematical precisions. We are expecting worldly but convincing reasons. - is a fit case to levy penalty under section 271B. - I T APPEAL NO. 1739 (MDs.) OF 2011 - - - Dated:- 19-1-2012 - DR. O. K. NARAYANAN, HARI OM MARATHA, JJ. S. Keerthirajan for the Appellant. Shaji P. Jacob for the Respondent. ORDER Dr. O.K. Narayanan, Vice-President This appeal is filed by the assessee. The relevant assessment year is 2006-07. The appeal is filed against the order of the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found that there is no substance in the reply filed by the assessee, the assessing authority converted his proposal to actual penalty. A penalty of Rs. 1 lakh has been levied. 3. When the matter was taken up before the Commissioner of Income-tax (Appeals), he found that the Assessing Officer has levied the penalty on just and proper reasons. To quote the words of the Commissioner of Income-tax (Appeals) himself, he has stated that "I strongly support the decision taken by the Assessing Officer in levying the penalty." 4. The assessee firm is aggrieved and therefore the second appeal before the Tribunal. 5. We heard Shri S. Keerthirajan, the learned chartered accountant appearing for the assessee and Shri Shaji P Jacob, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the assessee, the audit report was signed on 30-11-2006 itself. But the actual filing was delayed. The learned Commissioner of Income-tax explained that this position itself is dubious or doubtful, which gives a strong presumption that the assessee was proposing to back-date the audit report to plead mercy in the case. The learned Commissioner explained that the reasons such as the managing partner was away from the station, etc. are just worn out explanations in the present day time. Communication and logistics are very much available to attend important works even when the authorized person is out of station. The learned Commissioner of Income-tax explained that the delay occurred in filing the audit report and the other enclos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy should not be over-exploited to the extent that even section 271B itself might become otiose. In many cases we find that assessees caused delay in filing audit reports and other enclosures and the assessing authority imposed penalties and finally the assessees come before the Tribunal and the penalties got deleted. If this benevolency is going to be delivered for all the time to come, what is the sanctity of section 271B remaining in the statute book? The law enacted by the Parliament must be respected and must be followed. If the Act says that penalty is leviable in certain circumstances, penalty must be levied unless the victim shows that sufficient reasons were prevalent to justify the omission caused. Even though evidences cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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