9911796707
TMI Blog2014 (4) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... ppreciating that the appellant was prevented by sufficient cause and justifiable reasons from obtaining and filing the Tax audit Report u/s. 44AB of the Act. ii) In not cancelling of penalty u/s. 271B of the Act of Rs.1,00,000/- levied by the AO." 1.1 The return of income in respect of assessment year 2008-09 was e- filed by the Assessee on 03/09/2009 declaring income at Rs.15,26,85,450/-. The Assessee company is engaged in the business of shipping agents. The Assessee has received gross Revenue on account of commission to the tune of Rs.43,56,89,051/-, therefore, was required to obtain Tax Audit Report under the provisions of section 44AB of the Act before the specified date and also to furnish the same before due date of filing the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the delay in statutory audit prevented the assessee to obtain tax audit report and same may be considered to be a reasonable cause. She pleaded that as the assessee was prevented by reasonable cause the ld. CIT(A) has erred in upholding the levy of penalty. 2.1 On the other hand the ld. DR relied upon the order passed by the AO and CIT(A). 3. We have heard both parties and their contentions have carefully been considered. According to section 273B, no penalty shall be imposable on the person or the assessee, as the case may be for any failure which interalia include the defaults mentioned in section 271B, if he proves that there was reasonable cause for the said failure. A plain reading of section 273B makes it clear that the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the default. There can not be any proposition conceived of to the extent that if there was a substantive compliance or if there was no absolute default then penalty can not be imposed. But the statute has used the expression "may" employed in 271B which can not be treated to be mandatory. It has left a discretion that the taxing authority in given facts and circumstances may not impose penalty if they are satisfied that there was sufficient ground for not imposing penalty. But it depends on the facts of each case and having regard to the materials placed before it or where the finding is such that it can conceive of two alternate meaning, then the meaning beneficial to the assessee has to be accepted. Reference in this regard can be made to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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