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2017 (5) TMI 1165 - AT - Income TaxPenalty u/s. 271BA - non-filing of audit report in Form 3CEB in respect of the international transactions on or before the due date of filing the return u/s. 139(1) - assessee submitted that he was in a bonafide belief that no documents need to be filed along with the return of income in terms of explicit provisions contained section 139D(c) - Held that:- We find that in the instant case that the assessee had made available the audit report in Form 3CEB on 20.01.2012 which was much before the completion of proceedings by the Ld. TPO on 22.01.2014. In this regard, the expression "May" used in section 271BA of the Act, in our considered opinion, needs to be viewed liberally, in view of the reasoning given by the assessee due to bonafide mistaken understanding of provisions contained in section 139D(c) of the Act which itself would determine reasonable cause in terms of section 273B of the Act. Case of CIT Vs. A.N. Arunachalam [ 1994 (1) TMI 65 - MADRAS High Court ] would clearly support the facts of the case of the assessee. We also find that it is not the case of the Revenue that audit report in Form 3CEB was not obtained by the assessee on 02.09.2010. Accordingly, we hold that the assessee had substantively compiled with the provisions of the Act by obtaining the audit report in time, by filing the same though belatedly on 20.01.2012 but before the date of completion of assessment. Thus no hesitation in directing the Ld. AO to delete the penalty u/s. 271BA - Decided in favour of assessee.
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