TMI Blog2023 (4) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... o act in the manner prescribed by the statute. Admittedly, the income declared by the assessee in the return of income was accepted by the revenue without making any addition and disallowance. Likewise, the assessee has also furnished the tax audit report before the completion of the assessment. It appears that the book results shown by the assessee were substantially accepted by the revenue as genuine and the compliance was made by the assessee with some delay. The delay has also been explained by the assessee that it was the 1st year of the business. We are not inclined to uphold the findings of the authorities below. Accordingly, we set-aside the finding of the learned CIT-A and direct the AO to delete the penalty by him. Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts. The AY in dispute being 2015-16 is the first year of his business. 5. During the assessment year, it was observed by the AO that the turnover of the assessee for the relevant assessment year was amounting to Rs. 4,26,21,645/- only. According to AO, the assessee was required to get his accounts audited u/s 44AB of the Act before 31.10.2015 and Tax Audit Report was to be filed by 31-10-2015. Since, no Tax Audit Report was furnished by the assessee by or before the specified date, he initiated the penalty proceedings u/s 271B of the Act by issuing penalty notice dated 05.11.2017. The assessee in response to such notice submitted that the audit report was uploaded on 31.03.2017. It was also submitted by the assessee that this was his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of law not for concealment of income. As such, the Ld. CIT(A) found the contention of the assessee not palpable and upheld the decision of the AO. 8. Now the assessee is in appeal before us. 9. The ld. AR before us filed a written submission running from pages 1 to 3 and contended that there was a bona fides believe on the part of the assessee that for not getting his accounts audited and consequently failure to furnish the tax audit report within the prescribed time. As such, the assessee was under the impression that only the commission income shall be treated as the gross turnover of the assessee. Furthermore, the assessee on realization of his mistake got his accounts audited and filed the tax audit report before the complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in conscious disregard to its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute. 12. Coming to the case on hand where the penalty has been levied under section 271 B o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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