TMI Blog2022 (9) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings. Therefore, we are of the considered view that when the Tax Audit Report was made available to the AO before completion of assessment proceedings, then for venial technical breach without any mala fide intention, penalty cannot be levied u/s.271B of the Act. A similar issue has been considered in the case of M/s.T P D 101 Uthangarai Milk Producers Co-operative Society Ltd [ 2022 (6) TMI 1365 - ITAT CHENNAI] where on identical set of facts, penalty levied u/s.271B of the Act, has been deleted - we direct the AO to delete penalty levied u/s.271B. Appeal filed by the assessee is allowed. - ITA No. 2248/Chny/2019 - - - Dated:- 7-9-2022 - Shri V. Durga Rao, Hon ble Judicial Member And Shri G. Manjunatha, Hon ble Accountan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate issued by the doctor was produced before the Ld. CIT(A) during the appellate proceedings. 4. The Ld. Assessing Officer failed to appreciate that the tax audit report of the appellant has been made available during the scrutiny assessment proceedings u/s 143(3). It is also evident from the assessment order u/s 143(3) that the Ld. AO has accepted the returned income after verification of all the details including the tax audit report. It is only that the appellant had belatedly filed the report on 28.03.2016 along with the return of income, on mere basis of which levy of penalty u/s 27 IB is not justifiable, 5. Further, the Ld. Assessing Officer failed to appreciate that mere failure to furnish tax audit report in time will no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) for the reasons stated in his appellate order dated 30.05.2019, dismissed the appeal filed by the assessee and upheld the penalty levied u/s.271B of the Act. 4. The Ld.AR for the assessee submitted that although, the assessee has filed Tax Audit Report as required u/s.44AB of the Act, beyond due date specified u/s.139(1) of the Act, but such Audit Report was made available to the AO before completion of assessment and therefore, for venial technical breach without any mala fide intention, penalty cannot be levied. In this regard, relied upon the decision of co-ordinate Bench of the Tribunal in the case of M/s.T P D 101 Uthangarai Milk Producers Co-operative Society Ltd. v. ITO in ITA No.152/Chny/2021 for the AY 2015-16 dated 29.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d u/s.271B of the Act, has been deleted. The relevant findings of the Tribunal are as under: 7. We have heard both the parties and perused the materials available on record and gone through the orders of the authorities below. The assessee supposed to have been filed audit report as required u/s.44AB of the Act, on or before 31.10.2015. However, such audit report has been filed on 05.03.2016, which is before the date of completion of assessment proceedings u/s.143(3) of the Act. In other words, although the assessee has filed tax audit report beyond the stipulated period, but such tax audit report was made available to the AO before he completes assessment proceedings. The assessee has given reasons for delay in filing tax audit repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been made available before the AO, when the assessment proceedings were completed, then, there is no reason for levy of penalty. 8. In this view of the matter and considering the facts and circumstances of the case, we are of the considered view that reasons given by the assessee for not filing tax audit report within due date comes under reasonable cause as provided u/s.271B of the Act, and thus, the AO is erred in levying penalty u/s.271B of the Act. Hence, we direct the AO to delete penalty levied u/s.271B of Act. . 7. In this view of the matter and by following the decision of the coordinate Bench of the Tribunal in the case of M/s.T P D 101 Uthangarai Milk Producers Co-operative Society Ltd.(supra), we direct the AO t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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