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TMI Blog2019 (3) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... case are parimateria to the facts in case of the M/s RRVUNL Vs. ACIT [2018 (4) TMI 256 - ITAT JAIPUR] wherein held that where there is a delay in completion of statutory audit, there exist a reasonable cause for the delay in completion of tax audit and issuance of tax audit report. The ratio of the said decision equally applies in the instant case as the accounts of the assessee company are subject to statutory audit and once the statutory audit is completed, the tax audit can be initiated. Further, we find that under similar fact pattern, there was delay in completion of tax audit for the previous AY 2013-14 and the penalty proceedings so initiated u/s 271B were dropped by the Assessing officer himself. - Decided in favour of assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the specified date. 3. During the course of hearing, the ld. AR submitted, the assessee being a government company, statutory auditor is appointed by C AG and after statutory audit only, the tax audit can be conducted. It was submitted that the reason for delay in getting the accounts audited u/s 44AB for the year under consideration is due to delay in conducting the statutory audit for FY 2008-09 to FY 2012-13. In fact, the statutory audit for FY 2012-13 was completed on 19.05.2014 and thereafter the tax audit was completed on 11.02.2015 and for FY 2012-13 (AY 2013-14), penalty proceedings u/s 271B was initiated but considering the submission given by the assessee for delay in conducting the tax audit, the penalty proceedings was droppe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case there was a reasonable cause for delay in conducting the audit u/s 44AB as explained above. However, the Ld. CIT(A) without considering the same has incorrectly held that there is no reasonable cause for delay in getting the tax audit conducted. On similar facts, penalty imposed u/s 271B was deleted by Jaipur Bench in case of M/s RRVUNL Vs. ACIT (ITA No.100/JP/18 order dt. 28.03.2018) wherein it was held as under:- 7. We have heard the rival contentions and purused the material available on record. In the instant case, the limited issue for consideration is whether there is a reasonable cause for the delay in completing the tax audit and submitting the report of the tax auditor within the specified due date. Under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elay in completion and submission of the tax audit report under section 44AB of the Act. The penalty levied under section 271B is therefore deleted 6. The ld DR is heard who has relied on the order of the lower authorities. 7. We have heard the rival contentions and perused the material available on record. In the instant case, the C AG has appointed the statutory auditor of the assessee company on 02.09.2014 and after confirmation of remuneration and other terms of appointment by the Board of Directors, the statutory auditors have given their acceptance on 22.09.2014. The statutory audit was thereafter undertaken and the statutory auditors have given their audit report on 15.01.2015 and thereafter the tax auditor completed the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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