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| The Tax Publishers2019 TaxPub(DT) 0250 (Mad-HC) : (2019) 416 ITR 0336 INCOME TAX ACT, 1961
Section 271B
Where audit report was available with AO at the time of framing of assessment, assessee's explanation that during the year accountant suddenly resigned and left without notice, was a reasonable cause for failure to file audit report within time.
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Penalty under section 271B - Failure to file Audit Report - Reasonable cause -
The assessee filed audit report along with return of income and after that AO completed assessment under section 143(3). Since the audit report was not filed before last date, penalty was levied by AO under section 271B. His case was that accountant suddenly resigned and left without notice during the year and that he had to engage a new accountant which led to delay in filing audit report. Held: Reasons assigned by assessee was neither found to be false nor with any mala-fide intention. Therefore, it was a reasonable cause for failure to file audit report within time. Further when assessment was completed audit report was very much available with AO. Accordingly, penalty imposed was deleted.
Applied:Hindustan Steel Limited v. State of Orissa (1972) 83 ITR 26 (SC) : 1972 TaxPub(DT) 9 (SC),
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
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