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2020 (2) TMI 84 - AT - Income TaxPenalty u/s 271B - non complying the provisions of section 44AB - assessee did not get the books of account audited within the time as prescribed - non furnishing the audit report in form 3CD within the specified time - HELD THAT:- There was no infirmity in such tax audit report as observed by the AO. As such the income declared by the assessee in its income tax return has been accepted without pointing any variation. Moreover the purpose of tax audit was to ensure that the information furnished by the assessee in the income tax return are correct so as to save the time of the income tax officer is in carrying out routine verifications of the purchases and sales and other details shown in the financial statements. Thus it is transpired that there was the substantial compliance on the part of the assessee in getting the accounts audited and subsequently furnishing the tax audit report which was accepted by the revenue without pointing out any defect. Delay in getting the books of accounts audited cannot be considered as failure on the part of the assessee as envisaged under the provisions of section 271B of the Act. Thus the delay in getting the accounts audited cannot attract the penalty provisions as specified under section 271B of the Act. We are of the view that the assessee cannot be visited to the penalty on account of delay in getting the accounts audited and furnishing the tax audit report in form 3CD under the provisions of section 44 AB of the Act. With the above observations, the orders of lower authorities are set aside and the penalty levied u/s 271B is deleted. - Decided in favour of assessee.
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