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Gill Rice Mill Guru Sar Sahnewala v. Dy. CIT (2023) 105 ITR 717 (Amritsar)(Trib)

S.271B: Penalty-Failure to get accounts audited-Delay in filing audit report due to change of tax auditor-Reasonable cause for delay-Penalty cannot be levied

For the AY. 2017-18, the audit report was drawn on September 3, 2017. But the report was furnished before the Revenue on January 24, 2018. Therefore, the Assessing Officer levied penalty u/s. 274 read with section 271B.

The delay in the submission of the tax audit report u/s. 44AB before the Revenue authority was due to change of the tax auditor and the delay was only for this AY. and not in any other AY.s. The assessee was not a habitual defaulter in the matter of filing the tax audit report. Therefore, the penalty u/s. 271B was to be deleted. (AY. 2017-18)