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2019 (5) TMI 998 - AT - Income TaxLevy of penalty u/s 271B - delay in filing the audit report as per section 44AB on or before the due date of filing the return of income u/s 139(1) - reasonable cause for delay in getting the accounts audited u/s 44AB - main reason for delay is that there were frequent change of the Managing Director of the company and for a considerable period there was no regular Managing Director - HELD THAT:- Assessee has explained the reason for delay in filing the audit report as due to the delay of statutory audit of the financial statements of the assessee undertaking the audit u/s 44AB was not completed within the stipulated period. The assessee has further explained that there is a frequent change of Managing Director of the company and we find from the details as reproduced in the foregoing para that there are as many as 5 changes during the period from 01.04.2014 to 15.11.2014 which has caused the delay in convening the Board Meeting for adopting the financial statements of the assessee and consequent statutory audit to be completed by the auditors appointed by the CAG. The delay in getting the accounts audited as per the provisions of section 44AB was due to the reasons as explained by the assessee which were beyond the control of the assessee being a State Government Undertaking. The assessee has also filed a copy of resolution for seeking extension of time from ROC for convening the AGM and adoption of books of account. Thus the assessee has explained all the relevant facts and reasons for not getting the accounts audited u/s 44AB within the stipulated period. We are of the considered opinion that the assessee has explained a reasonable cause for delay in getting the accounts audited u/s 44AB and consequently in view of the provision of section 273B, the penalty levied u/s 271B is deleted. - Decided in favour of assessee.
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