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2023 (4) TMI 131 - AT - Income TaxPenalty u/s 271B - failure to get the accounts audited and furnished the audit report within the prescribed time - HELD THAT:- Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute. Admittedly, the income declared by the assessee in the return of income was accepted by the revenue without making any addition and disallowance. Likewise, the assessee has also furnished the tax audit report before the completion of the assessment. It appears that the book results shown by the assessee were substantially accepted by the revenue as genuine and the compliance was made by the assessee with some delay. The delay has also been explained by the assessee that it was the 1st year of the business. We are not inclined to uphold the findings of the authorities below. Accordingly, we set-aside the finding of the learned CIT-A and direct the AO to delete the penalty by him. Hence, the ground of appeal of the assessee is hereby allowed.
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