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TMI Blog2014 (4) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with provisions of section 44AB - Reason given in present case for non-compliance with statutory provisions of section 44AB is late completion of statutory audit by auditors which was completed on 21.04.2009 - After completion of said statutory audit, within a reasonable time, assessee obtained tax audit report on 25/06/2009 and return was e-filed on 03.09.2009 - Without completing statutory audit, Assessee could not have obtained tax audit report, which constitutes reasonable cause - Punjab & Haryana High Court in case of CIT vs. Punjab State Leather Development Corporation Ltd. [2001 (7) TMI 1275 - PUNJAB AND HARYANA HIGH COURT] held that delay in completion of statutory audit was reasonable cause for non- compliance with section 44AB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also to furnish the same before due date of filing the return which was 30/09/2008. The Tax Audit Report was obtained by the assessee on 26.06.2009 and it was furnished alongwith return which was filed on 03.09.2009. There being non-compliance with the provisions of section 44AB, the AO initiated penalty proceedings under section 271B of the Act. He required the assessee to show cause as to why penalty under section 271B should not be imposed as there is a failure on the part of the assessee to obtain and furnish Tax Audit Report under section 44AB under section 44AB on or before 30/09/2008. In response to such notice the assessee filed reply in which it was mentioned that the delay was on account of various reasons. One of such reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilure. A plain reading of section 273B makes it clear that the same is a procedural law with regard to the question of imposition of penalty under different sections which include section 271B. Section 271B maintains imposition of penalty on the failure but, by reason of rule of evidence provided under section 273B, such imposition of penalty is dependent on the proof that there was no reasonable cause for the failure. Omission of the particular phrase from the substantive law and incorporation thereof in the procedural law bears the legislative intent to make the provision of section 271B coercive instead of penal. The amendment was intended to remove the scope of any confusion with regard to the characteristics and nature of the proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has to be accepted. Reference in this regard can be made to the decision of the Hon'ble Calcutta High Court in the case of CIT vs. Capital Electronics (261 ITR 4). 3.1 If the facts of the present case are examined in the light of law laid down in the aforementioned decision then even according to facts and circumstances of this case there is material on record according to which it can be said that the Assessee was prevented by sufficient cause for non-compliance with the provisions of section 44AB. The reason given in the present case for non-compliance with the statutory provisions of section 44AB is late completion of statutory audit by the auditors which was completed on 21.04.2009. After completion of the said statutory audi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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