TMI Blog2023 (7) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... that no adverse inference can be drawn against the assessee for not filing the audit report within the prescribed time. We are of the considered view that the assessee had reasonable cause in terms of section 273B for not furnishing the audited report under section 44AB of the Act in time. Appeal by the assessee is allowed. - ITA No. 1250/Mum./2023 - - - Dated:- 27-7-2023 - Shri G.S. Pannu, President, And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri R. Anantha Krishnan For the Revenue : Smt. Mahita Nair ORDER The present appeal has been filed by the assessee challenging the impugned order dated 16/02/2023, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment for late filing of Audit Report which was available in the course of assessment. 8. The department is not justified in concluding that there was no reasonable cause for delayed submission of Audit Report. 9. As the notice issued for the levy of penalty is an Omnibus Notice where the inapplicable portions were not struck off, any penalty imposed on the basis of such invalid notice is bad in law. 10. The CIT (Appeals) has grossly erred in totally ignoring the additional grounds raised and the Supreme Court Judgment cited therein. Such an action of the CIT (Appeals) is violative of principles of natural justice and ought to be visited upon with costs. 11. For these and other grounds that may be raised at the time o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned CIT(A), the assessee submitted that due to the death of one of the directors, there was a delay in the audit of the books and submission of the audit report with the Department. The learned CIT(A), vide impugned order, dismissed the appeal filed by the assessee on the basis that a similar reason was submitted by the assessee in the assessment year 2017-18. The learned CIT(A) further noted that the director of the assessee died on 03/10/2017 and thereafter the business of the assessee was running normally. The learned CIT(A) also held that no sufficient basis has been brought on record to show that the directors were not capable enough to get the accounts audited or run the business. Being aggrieved, the assessee is in appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of the assessment. As per the assessee, the director, who was also an accountant and was looking after the affairs of the company, had expired on 03/10/2017, and therefore not only the return of income but also the tax audit report could not be filed on time. Since the assessee failed to furnish the audit report as required under section 44AB of the Act, the AO levied a penalty of Rs. 1,50,000 under section 271B of the Act. In the present case, it is undisputed that for the same reasons the penalty levied under section 271B of the Act was deleted in the assessment year 2017-18. We find that the learned AR is the other director of the assessee company, who has also signed Form no.36 of the present appeal and has claimed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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