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2022 (9) TMI 581 - AT - Income TaxPenalty u/s. 271B - delay for filing the audit report within the time frame prescribed under law - reasonable cause for filing the audit report belatedly provided or not? - HELD THAT:- As brought to our notice that the delay in filing the audit report occurred due to conversion of the business into private limited company and it was the first year of the company and due to the said reason assessee company required to do several formalities in compliance with the Companies Act and other ancillary laws do smooth transaction of the business to the company. There is only delay in filing the return of tax audit report on time which was accidental and unintentional on the part of the appellant assessee. According to the Ld. AR their exists reasonable cause for filing the audit report belatedly and under the foregoing reasons he submitted before us to quash the impugned order, we have satisfied with the explanation given by the assessee and in our opinion this is not a fit case for levying penalty u/s. 271B of the Act due to technical breach which was beyond the control of the appellant assessee and considering the facts and circumstances of the case, we are inclined to delete the penalty levied u/s. 271B of the Act. Appeal filed by the assessee is allowed.
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