TMI Blog2023 (4) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... e said failure. In the instant case, the submission of the assessee during the course of penalty proceedings that she was not keeping good health for which documentary evidences were filed are not disputed - there was a reasonable cause on the part of the assessee for not getting the accounts audited timely and file the same on or before the due date. We, therefore, set aside the order of the CIT (A), NFAC and direct the Assessing Officer to cancel the penalty. Appeal filed by the assessee is allowed. - ITA No. 31/Hyd/2023 - - - Dated:- 24-3-2023 - Shri R. K. Panda , Accountant Member And Shri K. Narasima Chary , Judicial Member For the Assessee : Shri T. Rajendra Prasad , CA For the Revenue : Shri K. P. R. R. Murthy , CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at the time of assessment, there was no impediment for the Assessing Officer to complete the assessment after taking note of the audit report which was admittedly available before him. It was argued that in the instant case also the audit report was available at the time of scrutiny proceedings itself. It was accordingly argued that the proceedings u/s 271B should be dropped. 4. However, the Assessing Officer was not satisfied with the arguments advanced by the assessee and levied penalty of Rs.1,50,000/- u/s 271B of the I.T. Act being 0.5% of the total sales of Rs. 1,50,000/- whichever is less. 5. In appeal, the learned CIT (A) confirmed the penalty levied by the Assessing Officer. 6. Aggrieved with such order of the CIT (A) NFA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 271B on the ground that the assessee did not obtain the audit report and file the same within the statutory due date. We find the learned CIT (A) upheld the action of the Assessing Officer. It is the submission of the learned Counsel for the assessee that due to health reasons, the assessee was unable to obtain the audit report and file the same within the due date, a fact already brought to the notice of the Assessing Officer which is not disputed by him and, therefore, the Assessing Officer was not justified in levying the penalty u/s 271B of the Act and the CIT (A) NFAC was not justified in sustaining penalty levied by the Assessing Officer. It is also his submission that the assessment has been completed u/s 143(3) and the audit repo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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