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TMI Blog2023 (6) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in confirming the penalty order passed by Ld. A.O u/s 271B of the income tax act 1961 is against the fact of the case and bad in law. 2. That the CIT(A) has erred in confirming penalty u/s 271B levied by the AO for non filing of audit report. The LD. AO failed to appreciate the fact that the assessee has been regularly filing audit report for years previous to A.Y.2017-18 and also for the future assessment years. 3. That the CIT(A) has erred in not appreciating that the failure to file audit report for A.Y.2017-18 was solely on account of expiry of digital signature and as such was prevented by reasonable cause to file audit report. 4. That the CIT(A) has erred in confirming penalty u/s 271B levied by the AO for failure to file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Assessing Officer during the course of assessment proceeding. Therefore he contended 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 malafide intention, penalty cannot be levied under section 271B of the Act. 3.2 The Ld. AR has brought to the notice of the Bench that the same fact has duly been brought to the knowledge of the Assessing Officer during the course of assessment proceeding that the only delay in not filing the Audit Report in time was due to technical glitch in the system on account of old digital signature of the assessee were expired and new digital signature could not be updated due to the reasons th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the delay in filing the Audit Report, on account of expiry of digital signature and due to technical glitch in the system. Thus, he was prevented by reasonable cause to update the digital signature and upload the required Audit Report. 5.2. The Ld. Counsel for the assessee contended that the Ld. CIT(A) was not justified in confirming the penalty under section 271B, ignoring the bonafide reasons for failure in filing of Audit Report even though the assessee has duly explained the bonafide reasons for the delay is covered under the exceptional circumstances as the provisions of Section 273B of the Act and moreover the assessee has filed the Audit Report alongwith balance sheet, statement of account and other Annexures during the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be false nor with any malafide intention. That the explanation filed by the assessee can be taken as a reasonable cause for his failure to file the Audit Report within time. 5.6 In the present case, the non filing Tax Audit Report before the due date has been a technical glitch and admittedly, the assessee filed the Audit Report under section 44AB. During the course of assessment proceedings and the assessment was framed by the Assessing Officer after considering the Audit Report and statement of account. In our view the explanation filed by the assessee can be accepted as a reasonable cause for his failure to file Audit Report with in time and it is not a fit case for imposing penalty under section 271B of the Act. Accordingly, the pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the grounds of appeal before the appeal is finally heard or disposed off. 7. During the course of assessment proceedings the Assessing Officer issued multiple notices before completion of the assessment under section 142(1) dt. 12/03/2018, 25/04/2019, 23/05/2019, 27/08/2019 and 18/09/2019 and final show cause notice was issued on 18/09/2019. 7.1 The assessee has failed to comply multiple notices issued on the five dates prior to the show cause notice issued. Accordingly, the Assessing Officer has initiated the penalty under section 272A(1)(d) of the Act for non compliance to the multiple notices separately issued under section 142(1) as above and levied penalty to the tune of Rs. 50,000/- in each and every default for the such fiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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