The assessee was levied penalty u/s 271B for delay in filing the audit report u/s 44AB within the...

The assessee was levied penalty u/s 271B for delay in filing the audit report u/s 44AB within the stipulated time. The assessee contended that the invoices and other records were destroyed by white ants, necessitating reconstruction of books of accounts before submitting them for audit, leading to the delay. However, the assessee failed to provide evidence substantiating the claim of books being destroyed by white ants. Section 273B provides relief from penalty if the assessee proves reasonable cause for the failure. Since the assessee could not demonstrate reasonable cause, the non-filing of audit report attracted penalty u/s 271B. The Appellate Tribunal upheld the penalty levied by the Assessing Officer and the order of the CIT(A), dismissing the assessee's grounds. .....

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