9911796707
TMI Blog2023 (5) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, thus, we are of the considered opinion that when the Tax Audit Report was made available to the Assessing Officer before completion of assessment proceedings, then for venial technical breach without any mala fide intention, penalty cannot be levied under section 271B of the Act. See case of Balaji Logistics [ 2022 (9) TMI 1432 - ITAT CHENNAI ] Thus it is not a fit case for the levy of penalty under section 271B of the Act and accordingly, the penalty levied stands deleted. Decided in favour of assessee. - I.T.A. No. 105/Chny/2023 - - - Dated:- 29-3-2023 - Shri V. Durga Rao, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Shri V. Meenakshi Sundar, C.A. For the Respondent : Shri P. Saji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹.1,50,000/- under section 271B of the Act. On appeal, the ld. CIT(A) (NFAC) confirmed the penalty levied under section 271B of the Act. 4. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the C AG has appointed the Statutory Auditor on 10.08.2017 and the Statutory Auditor accepted the audit by 27.03.2019. The matters relating to Auditor appointment and acceptance by them is not within the control of the assessee as being a Government company. It was further submission that the audit report under section 44AB of the Act were furnished during the course of assessment proceedings under section 143(3) of the Act, which was also considered by the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reach without any mala fide intention, penalty cannot be levied under section 271B of the Act. 6.1 Similar issue on an identical fact was subject matter in appeal before this Tribunal in the case of Balaji Logistics v. ACIT in I.T.A. No. 2248/Chny/2019 dated 07.09.2022 for the assessment year 2015-16, wherein, the Tribunal has observed as under: 6. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. It is an admitted fact that although the assessee has filed Tax Audit Report in Form 3CB as required u/s.44AB of the Act, beyond due date specified u/s.139(1) of the Act, but such Tax Audit Report was made available to the AO before completion of assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety done by the Dept. of Cooperative Audit, could not be completed on or before 31.10.2015 and said delay was not in the hands of the assessee. 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. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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