Delay in Filing Tax audit report on account of delay in getting it from auditors: ITAT deletes penalty U/S 271B

Income Tax Appellate Tribunal (ITAT) has deleted the penalty levied by the Assessing Officer U/S 271B in the matter of Kendrapara Credit Co-operative Society Ltd v/s Income Tax Officer (ITO).

A perusal of the facts as recorded by the AO shows that the delay in submitting the audit report was on account of a delay in obtaining the audit report from the statutory auditors. It is fairly admitted that the statutory auditors is appointed by the Registrar of Co-operative Societies and not by the assessee.

The assessee has sufficient and reasonable cause for delay in obtaining the audit report. It is also an admitted fact that the audit report was available before the Assessing Officer (AO) when the assessment was done. Consequently, the penalty was levied by the AO U/S 271B of the Act and confirmed by the ld CIT(A) stands deleted.

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