INCOME TAX ACT, 1961

Section 271B

Penalty under section 271B - Not filing tax audit report within due date specified under the Act - Technical glitch in e-portal provided for uploading tax audit report -

Assessee had filed tax audit report as required to be furnished under section 44AB electronically. Assessment was completed after making additions towards disallowance of expenditure. Thereafter, AO initiated penalty proceedings under section 271B for failure to file tax audit report as required under section 44AB within the due date specified and hence, called upon assessee to file necessary evidences as to why penalty shall not be levied for non-filing of tax audit report. Held: In this case, on perusal of details filed by assessee, although there was a delay in filing of audit report as required under section 44AB electronically, but such return has been filed much before the date of completion of assessment proceedings. Moreover, audit report as required to be obtained under section 44AB was obtained from auditors. When audit report was obtained within due date, merely for delay in filing audit report in e-portal of Department cannot be considered as deliberate attempt made by assessee for not filing audit report so as to impose penalty under section 271B. Hence, AO was directed to delete penalty levied under section 271B for non-submission of audit report.

Followed:Harishbhai Babubhai Patel v. ITO [ITA No. 646 (Ahd) of 2016 & ITA No. 647 (Ahd) of 2016, dt. 9-2-2017].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14

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