9911796707
TMI Blog2019 (3) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent : ADV. SRI. S. ARUN RAJ JUDGMENT Ashok Menon, J The assessee firm, engaged in the business of civil construction, and having a turnover exceeding Rs. 40 lakhs was under obligation to file tax audit report under Section 44AB of Income Tax Act, 1961 ('Act' for short) before 31.10.2004. The assessee filed the report along with the return of income only on 30.12.2004. Because of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o prejudice is caused to the Revenue because of the delay. Hence, the ITAT held that this is not a case fit for levying penalty under Section 271B of the Act. 3. Aggrieved by this finding of the ITAT, the Revenue is before us raising the following questions of law as re-framed by us: (1) Whether the ITAT was justified in deleting the penalty by accepting the assessee's explanation? (2) Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Accountant of the firm had left his job abruptly, without disclosing the password to the assessee. The entries in the computer, could not therefore, be updated. This caused the delay of two months in uploading the audit report together with the returns. The argument of the learned Senior Counsel for the Revenue is that the assessee could have either initiated legal action against the said e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he imposition of penalty for non-compliance with the provision of Section 44AB is not mandatory, though the filing of such report may be mandatory, as the word used in Section 44AB is 'shall'. But the the word 'may' used in section 271B gives discretion to the Assessing Officer to impose penalty or not to impose penalty. Further, the provision of Section 273B of the Act contains a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f reasonable cause under Section 271B of the Act. We are, therefore, in agreement with the findings of the ITAT that the delay was not deliberate and therefore, the assessee is entitled to be exempted from the penalty. There is no reason to interfere with the findings of the ITAT. The questions of law are hence answered in favour of the assessee and against the Revenue. The Income Tax Appeal is, h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
