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2016 (8) TMI 595 - AT - Income TaxPenalty u/s.271B - Failure to get accounts audited - Held that:- In the instant case, no doubt the assessee has not furnished the audit report during the course of assessment proceedings but such failure has been explained by the Ld. Counsel for the assessee as due to non-appearance by the Authorised Representative of the assessee due to the marriage of his son and the illness of his younger brother. Considering the totality of the facts of the case and considering the fact that assessee has filed the audit report before the AO during the course of penalty proceedings, got his accounts audited, paid the tax and filed the return of income much before the specified date, therefore, we are of the considered opinion that it is not a fit case for levy of penalty u/s.271B of the I.T. Act. We therefore set aside the order of the CIT(A) and direct the AO to cancel the penalty levied u/s.271B Penalty u/s.271(1)(b) - CIT(A) confirmed the penalty on the ground that assessee could not file documentary evidence to prove the reasonable cause for non-compliances of notices - Held that:- Submission of the Ld. Counsel for the assessee that the advocate was busy in marriage function of his son till 30-11-2011 and thereafter from 05-12-2011 onwards he was busy with the treatment of his younger brother who was detected with brain cancer and subsequently he died in our opinion is a reasonable cause for non compliance to the statutory notices. No doubt the assessee should have filed documentary evidence such as marriage invitation card and medical prescriptions of the younger brother of the advocate to substantiate his case that there was a reasonable cause on the part of the assessee for non compliance to such statutory notices. However, taking a lenient view and considering the totality of the facts of the case and the submission of the Ld. Counsel for the assessee at the bar that the younger brother of the tax consultant expired subsequent to the operation, we are of the opinion that there was a reasonable cause on the part of the assessee for non compliance to such statutory notices. We accordingly set aside the order of the CIT(A) and direct the AO to cancel the penalty of ₹ 10,000/- levied u/s.271(1)(b) of the I.T. Act. - Decided in favour of assessee
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