Tamil Nadu Fisheries Development Corporation Ltd. v. Dy. CIT

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The Tax Publishers2020 TaxPub(DT) 1937 (Chen-Trib)

INCOME TAX ACT, 1961

Section 271B

Since, assessee, being a corporation, gave valid reasons for delay in obtaining and filing of the tax audit report, moreover, revenue did not point out any continuous and repeated defaults justifying the penalty, thus, penalty imposed under section 271B was deleted.

Penalty under section 271B - Delay in obtaining and filing of the tax audit report - Assessee provided valid reasons for delay in obtaining and filing of the tax audit report -

Issue was as regards imposition of penalty under section 271B for late filing of audit report under section 44AB. Assessee contended that being a corporation functioning under Government of Tamil Nadu, because of shifting of the office as well as belated conduct of AGM, assessee was unable to obtain and file the tax audit report in time. Held: There is no definition for the term “reasonable cause” and it has to be decided upon the facts of each case. In case of assessee, being a corporation, gave valid reasons for delay in obtaining and filing of the tax audit report. Moreover, authorities below have not pointed out any continuous and repeated defaults justifying the penalty. Thus, in view of the provisions of section 273B and considering facts and circumstances, penalty levied under section 271B was deleted.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 271F