TMI Blog2019 (3) TMI 1682X X X X Extracts X X X X X X X X Extracts X X X X ..... of the computer due to hardware damage are reasonable causes for not furnishing the audit report before the AO within the stipulated time. Hence, we are inclined to hold that this is not a fit case for levying penalty u/s. 271B. - Appeal of the assessee is allowed. - I.T.A. No. 601/Coch/2018 - - - Dated:- 1-3-2019 - S/SHRI CHANDRA POOJARI, AM AND GEORGE GEORGE K., JM For the Appellant : Shri M.S. Venkitachalam, CA For the Respondent : Smt. A.S. Bindhu, Sr. DR ORDER Per CHANDRA POOJARI, AM: This appeal filed by the assessee is directed against the order of the CIT(A), Kottayam dated 29/10/2018 and pertains to assessment year 2012-13. 2. The only issue in this appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the certification dated 19/10/2012 was to the effect that Mr. S Naushad was under treatment for Lumbago Sciatica (Low Back Pain) from 20/09/2012 to 18/10/2012. However he could finalize the audit after 14 months of completion of his treatment only. The assessee or the Authorized Representative had not furnished any explanation for the delay occurred after 19/10/2012 till the date of filing the report. No cause or material evidence was brought on record to explain that the delay was due to reasons beyond the control of the assessee. Under the above circumstances, I am completely satisfied that the assessee had failed to get his accounts audited and to furnish the report of such audit before the specified date as required und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing the maintenance of the Computers of M/s. Attinkara Electronics, Chengannur. We were intimated on 25.10.2012 that one of their desktop computer was not working. Our system maintenance staff attended the complaint on that date and found that the entire data was lost due to hardware damage. We could not recover any data entered /saved in the system. sd/- Manager Systems Maintenance For Ampadi Systems 10/04/2015 4.2 Thus, it was submitted that there were genuine reasons for the delay. According to the Ld. AR, provisions of Section 273B provide that no penalty shall be imposable on the assessee if he proves that there is a reasonable cause for the said failure. 5. The CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Assessing Officer under section 271B of the Act. 6. Against this, the assessee is in appeal before us. 7 The Ld. DR relied on the order of the lower authorities. 8. We have heard the rival contentions and perused the record. The assessee was required to get his books of account audited as per the provisions of section 44AB of the Act before 30/09/2012 for the A.Y. 2012-13. The assessee got the books audited on 24/03/2014 and the same was furnished before the Assessing Officer on 27/03/2014. The assessment order was passed by the Assessing Officer on 26/03/2015. However, there was delay in furnishing the audit report in compliance with section 44AB of the Act. The contention of the Ld. AR is that the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .) ii) ACIT vs. Amar Chand Raj Kumar (2004) (89 ITD 96)(ITAT, Chandigarh) iii) Prem Prakash Senapati vs. ITO (ITA No.459 185/CTK/2017 dated 17/04/2018) )(ITAT, Cuttack). 7.1 From the material available on record, we are of the view that the assessee got his books of accounts audited on 28/03/2014 which was made available to the Assessing Officer and no prejudice has been caused to the Revenue. Now the short question that arises is whether in this scenario, penalty u/s. 271B of the Act can be levied or not. In our considered opinion, the assessee had only committed technical venial breach which does not create any loss to the exchequer as the audit report was available to the Assessing Officer before the complet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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