Manju Saran v. ITO (2023) 102 ITR 64 (Jaipur.) (Trib.)

S. 271B :Penalty-Failure to get accounts audited-No penalty to be levied when Assessee has voluntarily filed audit report though belatedly and the delay in obtaining tax audit report is on account of bona fide reasons [S.274]

The issue involved here pertains to imposition of penalty under section 271B of the Act against Assessee for delay in furnishing of audit report within due date.

The Hon’ble Tribunal noted that the Assessee had submitted the audit report though delayed and after the due date but without issuance of any notice. The delay in filing of the tax audit report was caused since the computer data crashed and it took time to recover the data and finalise the accounts again. The Assessee also submitted a sworn affidavit to this effect. No such default was observed by the revenue in the past. Considering the aforesaid fact pattern and voluntary compliance made by Assessee, the Hon’ble Tribunal held that penalty under section 271B of the Act cannot be levied for the reason that the failure was on account of a bona fide reason. Accordingly, the Assessing Officer was directed to delete the penalty levied on Assessee. (AY. 2017-18)