TMI Blog2023 (6) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... In our view the explanation filed by the assessee can be accepted as a reasonable cause for his failure to file Audit Report with in time and it is not a fit case for imposing penalty u/s 271B of the Act. Accordingly, the penalty levied under section 271B of the Act is deleted. Penalty u/s 272A(1)(d) - non compliance to notices u/s 142(1) - As argued notices were not being received by the assessee personally - HELD THAT:- Penalty under section 272A(1)(d) may not be imposed for each and every default to the notices issued under section 142(1) which remained non complied on the part of the assessee. The provisions of Section 272A(1)(d) is of deterrent in nature and not for earning revenue. The remedy available with the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) has erred in not appreciating that the failure to file audit report for A.Y.2017-18 was solely on account of expiry of digital signature and as such was prevented by reasonable cause to file audit report. 4. That the CIT(A) has erred in confirming penalty u/s 271B levied by the AO for failure to file audit report even when the assessee duly submitted the audit report along with balance sheet, P L A/C and other annexure during the assessment proceedings. Furthermore, the Id. AO had also examined the financials submitted in audit report and the same was accepted by the Ld. AO in Para no 2 at page no 2 of the order u/s 144 dated 19.12.2019, 5. That the CIT(A) has erred in not appreciating that the AO while confirming the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught to the knowledge of the Assessing Officer during the course of assessment proceeding that the only delay in not filing the Audit Report in time was due to technical glitch in the system on account of old digital signature of the assessee were expired and new digital signature could not be updated due to the reasons that there was mismatch in the particulars as uploaded on the online portal and as per the Aadhaar Card. 3.3 Thus, the assessee was prevented by sufficient cause as per the provisions prescribed under section 273B of the Income Tax Act for not filing the Audit Report in time. He argued that thought the assessee has filed Tax Audit Report beyond the stipulated time but the said Tax Audit Report made available to the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in filing of Audit Report even though the assessee has duly explained the bonafide reasons for the delay is covered under the exceptional circumstances as the provisions of Section 273B of the Act and moreover the assessee has filed the Audit Report alongwith balance sheet, statement of account and other Annexures during the assessment proceedings which have been examined by the Assessing Officer. 5.3 From the assessment order, it is evident that the assessee has filed its reply alongwith financial statement and computation of income for the assessment year under consideration alongwith Audit Report in prescribed form for the year under consideration. It is noted that although the Audit Report could not be filed within prescribed time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment was framed by the Assessing Officer after considering the Audit Report and statement of account. In our view the explanation filed by the assessee can be accepted as a reasonable cause for his failure to file Audit Report with in time and it is not a fit case for imposing penalty under section 271B of the Act. Accordingly, the penalty levied under section 271B of the Act is deleted. 6. Now we take up the appeal in ITA No. 71/Asr/2023 for the assessment year 2017- 18 wherein the assessee has raised the following grounds: 1. That the CIT(A) has erred in confirming penalty order passed by Ld. A.O u/s 272A(1)(d) of the income tax act 1961 which is against the fact of the case and bad in law. 2. That the CIT(A) has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to comply multiple notices issued on the five dates prior to the show cause notice issued. Accordingly, the Assessing Officer has initiated the penalty under section 272A(1)(d) of the Act for non compliance to the multiple notices separately issued under section 142(1) as above and levied penalty to the tune of Rs. 50,000/- in each and every default for the such five non compliance to the notice under section 142(1) of the Act. 8. In appeal the Ld. CIT(A) has confirmed levy of penalty under section 272A(1)(d) by observing that the assessee has failed to bring on record any cogent reason which is reasonable enough to make his case exceptional. 9. The Ld. Counsel for the assessee submitted that the law is settled that issue of penalty u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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