Allowing the appeal the Court held that the explanation offered by the assessee could be taken as reasonable cause for his failure to file the audit report within time. The reasons assigned by the assessee for the delay in filing the audit report were not found to be false or with any mala fide intention. It was a technical breach. The audit report was very much available with the Assessing Officer on March 29, 2015, the date of completion of the assessment under section 143(3). This was not a fit case for imposing penalty under section 271B. (AY. 2012-13)
P. Senthil Kumar v. CIT (2019) 416 ITR 336 (Mad.)(HC)
S. 271B : Penalty-Failure to get accounts audited–Audit report was available with AO on date of completion of assessment–Reasonable cause–Penalty not warranted. [S. 273B]