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2023 (2) TMI 765 - AT - Income TaxPenalty u/s 271B - non-furnishing of TAR within the prescribed time limit u/s 44AB r.w.s. 139(1) - Scope of reasonable cause - Whether reasons advanced by the appellant are good & reasonable to take shelter u/s 273B of the Act? - HELD THAT:- It is well settled law that, section 273B states notwithstanding anything contained in section 271B, no penalty shall be imposed on the assessee for failure to comply with the provisions of section 44AB if the assessee proves that there was a reasonable cause for the said failure. Therefore, the liability to levy penalty can be fastened only on only on the assessee who does not have a ‘reasonable cause’ against the noncompliance of mandate. The burden, of course, is on the assessee to prove such ‘reasonable cause’ with evidential documents so has to take shield against the levy of penalty. Delayed compliance with the mandates of section 44AB of the Act, we have noted all the reasons furthered by the appellant during assessment and appellate proceedings and find them ‘reasonable’ and convincing for the purpose of section 273B so has to hold the imposition of penalty as unjustified in the light of Hindustan Steel Ltd. Vs State of Orissa [1969 (8) TMI 31 - SUPREME COURT] - thus direct the Ld. AO to delete the penalty - Decided in favour of assessee.
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