Delay in Filing Tax Audit Report due to non-availability of Accountant: ITAT waives penalty u/s 271B

In the matter of Shri Deepak T. Dhanwani vs ITO Chennai bench of the Income Tax Appellate Tribunal (ITAT) has waived penalty u/s 271B due to Delay in Filing Tax Audit Report.

The impugned order has been passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 22-11-2022 in the matter of impugned penalty levied by Ld. Assessing Officer [AO] u/s. 271B of the Act vide order dated 15-12-2021. In the penalty order, the penalty has been levied on the finding that the assessee furnished Tax Audit Report u/s 44AB on 30-03-2019 which is after the specified due date. During appellate proceedings, the assessee attributed the delay to the fact that the accountant who was handling the accounts suddenly left the job which led to the delay. However, Ld. CIT(A) confirmed the penalty against which the assessee is in further appeal before ITAT.

The registry has also noted a delay of 93 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of an affidavit filed by the assessee wherein it has been stated that the delay took place due to adverse medical conditions being faced by assessee’s wife.

ITAT Order:

3. From the record, it emerges that the assessee has furnished the Tax Audit Report along with return of income filed u/s 139(4). In such a case, the decision of coordinate bench of this Tribunal in Shri Ramunaicker Raja vs. ACIT (ITA No. 603/Chny/2022 dated 15-02- 2023) would support the case of the assessee wherein, on similar facts, it was held that it was not a fit case for levy of penalty u/s 271B. Respectfully following the same, we delete the impugned penalty.

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