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2016 (10) TMI 220 - ITAT PUNELevy of penalty u/s. 271B - Delay in getting the accounts audited and obtaining tax audit report u/s. 44AB - Held that:- As per the provisions of section 44AB of the Act the, the assessee was required to get accounts audited for the assessment year under appeal on or before 30-09-2008. However, the assessee could get the accounts audited on 20-01-2009. Thus, there was delay of 3 months and 20 days in getting the accounts audited and obtaining tax audit report u/s. 44AB of the Act. A perusal of the written submissions filed by assessee and impugned order shows that the delay in getting the accounts audited was for the reason that the Accountant of the assessee left his service without finalization of the accounts. The assessee engaged the service of another Accountant. The newly appointed Accountant took some time to pick up the threads of the work left in between by the outgoing incumbent. Further, it has been submitted that the major source of income of assessee is service charges received from M/s. Maxpro Associates, a sister concern of assessee. The income from M/s. Maxpro Associates is accounted on the basis of credit notes issued. Since, M/s. Maxpro Associates could not finalize its books of account in time, M/s. Maxpro Associates issued credit notes to the assessee for the last quarter of the financial year ended on 31-03-2008 in December, 2008. The assessee finalized its books after receiving credit notes from M/s. Maxpro Associates. However, the assessee filed the tax audit report as envisaged u/s. 44AB of the Act along with the return of income within the extended time for filing of return of income u/s. 139(4) of the Act. The explanation furnished by the assessee for delay in finalization of accounts and getting the same audited thereafter seems to be plausible. The delay in finalization of accounts was beyond the control of assessee. In the absence of finalization of accounts it was not possible for the assessee to get the same audited within the time specified under the provisions of the Act. Mere delay in filing of tax audit report as envisaged u/s. 44AB would ipso facto not attract the penalty where the delay in filing of audit report has been reasonably explained. The Co-ordinate Bench of the Tribunal in the case of Prachin Land Infra Pvt. Ltd. Vs. ITO (2013 (11) TMI 1668 - ITAT PUNE) in similar circumstances where the Assessing Officer levied penalty u/s. 271B for obtaining the Audit Report on 11-02-2009 as against the statutory date of 31-10-2007, deleted the penalty levied u/s. 271B of the Act - Decided in favour of assessee
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