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2023 (1) TMI 409 - AT - Income TaxLevy of penalty u/s. 271(1)(b) - Non compliance requirement in respect of special audit u/s. 142(2A) -reasonable cause within the meaning of section 273B - HELD THAT:- As decided in SHRI ASHESH AGARWAL case [2022 (12) TMI 1223 - ITAT LUCKNOW] relevant ledgers for all the years under consideration were impounded by the Ld. AO in the course of assessment itself which has prevented the assessee in making compliance to the requirements of the special auditors for getting the special audit u/s. 142A of the Act completed. Where the law creates a duty or charge and the party is disabled to perform it, without any default in him and has no remedy over it, there the law will, in general, excuse him. Therefore, when it appears that the performance of the formalities prescribed by a statute has been rendered impossible by circumstances over which the person interested had no control, the circumstances will be taken as a valid excuse. Assessment proceedings furnished by the Ld. Counsel, it is evidently demonstrated that there exists a reasonable cause within the meaning of section 273B of the Act which prevented the assessee in meeting the compliance requirement in respect of special audit u/s. 142(2A) of the Act. - Levy of penalty directed to be deleted. Decided in favour of assessee.
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