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2023 (10) TMI 456 - AT - Income TaxLevy of penalty u/s. 271B - assessee did not file the Audit Report as required u/s. 44AB of the Act, on or before due date - HELD THAT:- Admittedly, it is a well settled principle of law by the decision of P. Senthil Kumar v. [2019 (1) TMI 222 - MADRAS HIGH COURT] where considering the decision of Hindustan Steel Ltd. [1969 (8) TMI 31 - SUPREME COURT] held that non-filing of Audit Report on or before due date, is a technical breach and admittedly, when such Tax Audit Report has been filed before assessment was passed by the AO, the question of levy of penalty u/s. 271B of the Act, does not arise. The ITAT Chennai Benches in the case of Rajendran Sreedharan [2023 (4) TMI 1253 - ITAT CHENNAI] had considered an identical issue and held that when the Tax Audit Report was made available to the AO before he completes assessment u/s. 143(3) of the Act, then penalty u/s. 271B of the Act, cannot be levied for delay in filing of such Audit Report. In this case, there is no dispute with regard to the fact that the assessee, although, filed Tax Audit Report beyond due date prescribed under the Act, but such Audit Report has been filed before the AO completes the assessment. Therefore, we are of the considered view that the AO is erred in levying penalty u/s. 271B of the Act, for non-furnishing of Tax Audit Report, and thus, we direct the AO to delete the addition made towards penalty levied u/s. 271B of the Act. Decided in favour of assessee.
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