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2018 (4) TMI 256 - AT - Income TaxLevy of penalty u/s 271B - failure to get the accounts audited and furnished the audit report before the specified due date - reasonable cause for the delay in completing the tax audit and submitting the report of the tax auditor within the specified due date - Held that:- In the present case, the reason for the delay has been stated to be the delay in completing the statutory audit for the earlier years which has resulted in delay in completion of statutory audit for the year under consideration and the resultant delay in completing the tax audit and submitting the report thereof. As submitted that without completing the statutory audit, the tax audit could not have been completed. Statutory auditors are appointed by the Comptroller & Auditor General of India under section 619(2) of the Companies Act, 1956 and they have completed the statutory audit and submitted their audit report dated 27.03.2014. Thereafter, the tax audit has been completed on 15.07.2014 and the revised return was filed on 16.9.2014. The Hon'ble Punjab & Haryana High Court in the case of CIT v. Punjab State Leather Development Corpn. Ltd. [2001 (7) TMI 1275 - PUNJAB AND HARYANA HIGH COURT] has held that delay in completion of statutory audit was a reasonable cause for non-compliance with section 44AB and it was held that the Tribunal was right in cancelling penalty levied under section 271B - in the instant case, where there has been a delay in completion of statutory audit, there exist a reasonable cause for the delay in completion and submission of the tax audit report under section 44AB of the Act. The penalty levied under section 271B is therefore deleted. - Decided in favour of assessee
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