9911796707
TMI Blog2022 (6) TMI 1365X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, there is a reasonable cause for not filing the tax audit report within prescribed time limit ad thus, penalty cannot be levied. We find merits in the submission of the assessee for the simple reason that non-filing of audit report within the due date is a venial technical breach without any mala fide intention on the part of the assessee. Because, completion of audit of books of accounts of the society is under the control of Dept. of Cooperative Audit and thus, unless the Dept. of Cooperative Audit completes audit, the assessee cannot file return of income along with tax audit report. Therefore, reasons given by the assessee for not filing tax audit report prescribed u/s.44AB of the Act, is neither intention nor any mala fid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax (Appeals),NFAC dated 31.03.2021 is opposed to the facts of the case and is not legally maintainable. 2. The first appellate authority has not considered all the aspects raised in the Written submissions pated 07.01.2021.In the above written submissions it was specifically pointed out that both initiation of penalty proceedings and levy of penalty are barred by limitation in terms of Sec:275 of the Act. further it was submitted that the appellants case is squarely covered by the decision of the Jurisdictional High Court in the Case of P.Senthil Kumar ys PCIT reported m 416 1TR 336. 3. In view of the above grounds and other submissions to be made at the time of Appeal hearing, the order U/s 250 passed by Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of Tamil Nadu, and such audit was completed in March, 2016 and immediately, the assessee has filed tax audit report on 05.03.2016 before the assessment was completed u/s.143(3) of the Act. The ld.AR further submitted that the delay in getting timely audit report from the Department of Cooperative Audit, is not in the hands of the assessee and thus, when tax audit report was made available with the AO before completion of assessment, the question of levy of penalty u/s.271B of the Act, does not arise. 6. The ld.DR on the other hand, supporting the order of the CIT submitted that reasons given by the assessee does not come under reasonable cause as provided u/s.273B of the Act, and thus, there is no error in the findings of the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, we are of the considered view that reasons given by the assessee for not filing tax audit report prescribed u/s.44AB of the Act, is neither intention nor any mala fide intention, but it is venial technical breach and for this reason, penalty u/s.271B of the Act, cannot be levied. This principle is supported by the decision of the Hon ble jurisdictional High Court in the case of P.Senthil Kumar v. PCIT reported in 416 ITR 336, where an identical issue had been considered by the Court and held that for venial technical breach without any mala fide intention, penalty cannot be levied. The ITAT Cochin Bench in ITA No.411/Cochin/2018 vide order dated 05.02.2019 had held that once audit report has been made available before the AO, when th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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