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2019 (3) TMI 630 - AT - Income TaxLevy of penalty u/s. 271B - delay in getting the accounts audited - failure to comply with the provisions of section 44AB of the Act subject to provisions of section 273B i.e. reasonable cause for the delay - contention of the AR was that the delay in filing the return of income was due to damage to computer system due to virus infection - HELD THAT:- The assessee got his books of accounts audited on 28/03/2014 which was made available to the Assessing Officer and no prejudice has been caused to the Revenue. The assessee had only committed technical venial breach which does not create any loss to the exchequer as the audit report was available to the Assessing Officer before the completion of the assessment proceedings. The Madras High Court in the case of CIT vs. A.N. Arunachalam (1994 (1) TMI 65 - MADRAS HIGH COURT) in the context of filing of audit report for claiming deduction u/s. 80J of the Act, observed that once audit report has been made available before the Ld. Assessing Officer before the completion of assessment proceedings, the assessee should be granted deduction u/s. 80J of the Act. We observe that this judgment was rendered in the context of adjudication of quantum of deduction claimed by the assessee. Thus assessee had committed only technical venial breach for which he cannot be penalized. Penalty to be deleted - Decided in favour of assessee.
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