9911796707
TMI Blog2016 (8) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Ld. Counsel for the assessee that the advocate was busy in marriage function of his son till 30-11-2011 and thereafter from 05-12-2011 onwards he was busy with the treatment of his younger brother who was detected with brain cancer and subsequently he died in our opinion is a reasonable cause for non compliance to the statutory notices. No doubt the assessee should have filed documentary evidence such as marriage invitation card and medical prescriptions of the younger brother of the advocate to substantiate his case that there was a reasonable cause on the part of the assessee for non compliance to such statutory notices. However, taking a lenient view and considering the totality of the facts of the case and the submission of the Ld. Counsel for the assessee at the bar that the younger brother of the tax consultant expired subsequent to the operation, we are of the opinion that there was a reasonable cause on the part of the assessee for non compliance to such statutory notices. We accordingly set aside the order of the CIT(A) and direct the AO to cancel the penalty of ₹ 10,000/- levied u/s.271(1)(b) of the I.T. Act. - Decided in favour of assessee - ITA Nos.2167 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime the details were not available and therefore the assessee has never uploaded the audit report in the return filed electronically. Rejecting the various explanations given by the assessee and distinguishing the various decisions cited before him the AO levied penalty of ₹ 1 lakh u/s.271B of the I.T. Act. 5. Before CIT(A) the assessee more or less reiterated the same submissions. However, the CIT(A) was also not satisfied with the explanation given by the assessee and upheld the penalty levied u/s.271B of the I.T. Act by observing as under : 9. I have carefully considered facts of the case and rival contentions. On perusal of the same, it has been noticed that the appellant has asked the appellant to file tax audit report on various occasions, however, the AO has not filed the same wither after filing the return of income or during assessment proceedings. The appellant has claimed that he has obtained tax audit report dated 20-05-2009, however, the said audit report has been furnished along with submission dated 06-08-2013. The appellant has mentioned in his submission dated 24/09/2014 that in para-7 (i) of Circular No.3 of 2009 dated 21/05/2009, it has been clari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report before the specified date is bonafide. It is not the case of the assessee that the tax was paid on the last day of the month and the return was filed thereafter for which a doubt can be raised in the mind of anybody that the assessee has not obtained the audit report before the specified date. So far as the allegation of the AO that audit report was not filed till the date of completion of assessment, he submitted that it is true that the assessee did not attend the assessment proceedings before the AO but there are valid reasons for the same which is due to the marriage of the son of the Tax Consultant and illness of the younger brother of the Tax Consultant. He submitted that a copy of the tax audit report was filed before the AO during the course of penalty proceedings. He again reiterated that the assessee has obtained the audit report before the specified date and therefore no penalty u/s.271B is called for. 8. The Ld. Departmental Representative on the other hand heavily relied on the order of the CIT(A). He submitted that the CIT(A) has given justifiable reasons while upholding the penalty of ₹ 1 lakh levied by the AO u/s.271B of the I.T. Act. 9. We have c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty shall not be imposed for failure to comply with the provisions of section u/s.44AB if the assessee proves that there was a reasonable cause for the said failure. In the instant case, no doubt the assessee has not furnished the audit report during the course of assessment proceedings but such failure has been explained by the Ld. Counsel for the assessee as due to non-appearance by the Authorised Representative of the assessee due to the marriage of his son and the illness of his younger brother. Considering the totality of the facts of the case and considering the fact that assessee has filed the audit report before the AO during the course of penalty proceedings, got his accounts audited, paid the tax and filed the return of income much before the specified date, therefore, we are of the considered opinion that it is not a fit case for levy of penalty u/s.271B of the I.T. Act. We therefore set aside the order of the CIT(A) and direct the AO to cancel the penalty levied u/s.271B of the I.T. Act. Ground raised by the assessee is accordingly allowed. ITA No.2167/PN/2014 : 12. The assessee in its only ground of appeal has challenged the order of the CIT(A) in confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s an admitted fact that the assessee did not comply to the statutory notices for which the AO levied penalty of ₹ 10,000/- u/s.271(1)(b) of the I.T. Act. The Ld.CIT(A) confirmed the penalty on the ground that assessee could not file documentary evidence to prove the reasonable cause for non-compliances of notices. It is the submission of the Ld. Counsel for the assessee that the advocate was busy in marriage function of his son till 30-11-2011 and thereafter from 05-12-2011 onwards he was busy with the treatment of his younger brother who was detected with brain cancer and subsequently he died. This in our opinion is a reasonable cause for non compliance to the statutory notices. No doubt the assessee should have filed documentary evidence such as marriage invitation card and medical prescriptions of the younger brother of the advocate to substantiate his case that there was a reasonable cause on the part of the assessee for non compliance to such statutory notices. However, taking a lenient view and considering the totality of the facts of the case and the submission of the Ld. Counsel for the assessee at the bar that the younger brother of the tax consultant expired subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
