Bashir Usman karbhari, Karad V. Dy.Commissioner of Central Circle, 2(1), Pune

ITA 267/PUN/2023

AI Insights

The case involves Bashir Usman Karbhari, the appellant, who faced a penalty of Rs.1,50,000 imposed by the Assessing Officer (AO) for failing to submit an audit report by the due date under section 139(1) of the Income-tax Act, 1961. The penalty was confirmed by the CIT(A), Pune 12, leading to the appeal before the Income Tax Appellate Tribunal. The appellant argued that his failure was due to a medical condition (Swine flu) which was uncontested by the AO. The Tribunal, considering the circumstances and the provisions of section 273B, decided in favor of the appellant, highlighting the importance of reasonable cause in the imposition of penalties under the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137780 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 07-03-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 273B; 139(1); 44AB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA. No.267/PUN/2023 नधा रण वष / Assessment Year : 2017-18 Bashir Usman Karbhari, 241-2, Shaniwar Peth, Main Road, Patan Colony, Karad – 415 110 PAN : ABDPK3241R Vs. The Dy.CIT, Central Circle-2(1), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order passed by the ld. CIT(A), Pune 12 on 13-01-2023 in relation to the assessment year 2017-18. 2. The only issue raised in this appeal is against the confirmation of penalty of Rs.1,50,000/- imposed by the Assessing Officer (AO) u/s.271B of the Income-tax Act, 1961 (hereinafter also called ‘the Act’). Assessee by Shri M.K. Kulkarni & Smt. JR Chandekar Revenue by Shri Ramnath P. Murkunde Date of hearing 01-05-2023 Date of pronouncement 01-05-2023 ITA No.267/PUN/2023 Bashir Usman Karbhari 2 3. Briefly stated, the facts of the case are that the assessee filed his e-return on 28-03-2018 declaring total income at Rs.13,49,120/-. Since the accounts were required to be audited and the assessee failed to submit the audit report before the due date u/s.139(1), the AO imposed penalty u/s.271B amounting to Rs.1,50,000/-. Such penalty came to be affirmed in the first appeal, against which the assessee has approached the Tribunal. 4. We have heard the rival submissions and gone through the relevant material on record. It is evident from the penalty order passed by the AO u/s.271B that the assessee failed to get the accounts audited, as he was suffering from Swine flu during that period and doctor had advised to take rest. This assertion has been recorded in the penalty order, which has not been controverted by the AO. Though, admittedly, there is a delay in getting the accounted audited in terms of section 44AB and filing the audit report within the time allowed u/s 139(1) of the Act, which otherwise requires imposition of penalty u/s.271B, but the prescription of section 273B applies as per which if there exists a reasonable and sufficient cause for non-compliance, then the ITA No.267/PUN/2023 Bashir Usman Karbhari 3 penalty should not be imposed. We are satisfied with the cause pleaded by the assessee before the authorities below, being, the medical condition, for failure to file the audit report in time. We, therefore, order to delete the penalty. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 01 st May, 2023. Sd/- Sd/- ( S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 01 st May, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr. CIT(Central), Pune DR, ITAT, ‘A’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.267/PUN/2023 Bashir Usman Karbhari 4 Date 1. Draft dictated on 01-05-2023 Sr.PS 2. Draft placed before author 01-05-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *