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2014 (4) TMI 206 - AT - Income TaxLevy of penalty u/s 271B – Delay in getting and furnished Tax Audit report - non-compliance with provisions of section 44AB – Held that:- According to section 273B, no penalty shall be imposable on person, for any failure which interalia include defaults mentioned in section 271B, if he proves that there was reasonable cause for the said failure - Section 271B maintains imposition of penalty on failure but, by reason of rule of evidence provided u/s 273B, such imposition of penalty is dependent on proof that there was no reasonable cause for failure - Material on record stated that Assessee was prevented by sufficient cause for non-compliance with provisions of section 44AB - Reason given in present case for non-compliance with statutory provisions of section 44AB is late completion of statutory audit by auditors which was completed on 21.04.2009 - After completion of said statutory audit, within a reasonable time, assessee obtained tax audit report on 25/06/2009 and return was e-filed on 03.09.2009 - Without completing statutory audit, Assessee could not have obtained tax audit report, which constitutes reasonable cause - Punjab & Haryana High Court in case of CIT vs. Punjab State Leather Development Corporation Ltd. [2001 (7) TMI 1275 - PUNJAB AND HARYANA HIGH COURT] held that delay in completion of statutory audit was reasonable cause for non- compliance with section 44AB and it was held that Tribunal was right in cancelling penalty levied under section 271B - CIT(A) was not right in upholding the levy of penalty under section 271B – Decided in favor of Assessee.
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