ANNAMALAIKOTTAI PALANISAMY NANDHAKUMAR, ERODE V. ITO, CHE-C-(65) (1), ERODE

ITA 324/CHNY/2023

AI Insights

The case involves Mr. Annamalaikottai Palanisamy Nandhakumar, who faced a penalty under section 271B for failing to timely submit an audit report as required under section 44AB due to delays attributed to the demonetization year. The Income Tax Officer (ITO) initially levied the penalty, which was upheld by the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre in Delhi. However, upon appeal to the Income Tax Appellate Tribunal, it was determined that the delay was minor and reasonable under the circumstances, leading to the penalty being set aside.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133927 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 14-03-2023
• Laws Referred To: Section 271B, Section 143(3), Section 37(1), Section 44AB, Section 273B
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 143(3); 271B; 13

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी मनोज कु मार अ/वाल ,लेखा सद4 एवं माननीय +ी मनोमोहन दास ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM, AND HON’BLE SHRI MANOMOHAN DAS, JUDICIAL MEMBER आयकर अपील सं./ ITA No.324/Chn y/2023 (िनधा@रण वष@ / Assessment Year: 2017-18) Mr.Annamalaikottai Palanisamy Nandhakumar 2, Opp. KMCG Hospital Gandhi Nagar Colony, Erode-638 009. बनाम / V s . Income Tax Officer CHE-C-65(1) Erode. था यी ले खा सं. /जीआ इ आ र सं. /P AN / G I R No . ABP P N -6 488- B (अ पीलाथ%/Appellant) : (&'थ% / Respondent) अपीलाथ% की ओरसे/ Appellant by : Shri Girish Kumar (Advocate)-Ld. AR &'थ% की ओरसे/Respondent by : Shri D.Hema Bhupal (JCIT) –Ld.DR सुनवाई की तारीख/Date of Hearing : 25-04-2023 घोषणा की तारीख /Date of Pronouncement : 25-04-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271B for Rs.1.50 Lacs for Assessment Year (AY) 2017-18, the assessee is in further appeal before us. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 24-01-2023 in the matter of impugned penalty levied by Ld. AO vide order dated 11.01.2022. Having heard rival submissions and after perusal of case records, the appeal is disposed-off as under. ITA No.324/Chny/2023 - 2 - 2. The assessee was assessed u/s 143(3) on 04.12.2019 after disallowance of Rs.3 Lacs u/s 37(1). The assessee is dealer of Indian Oil Corporation and practicing as a Doctor. The assessee admitted income of Rs.23.63 Lacs. Since there was delay in furnishing Audit Report u/s 44AB, Ld. AO proposed impugned penalty u/s 271B. The due date for filing the report was 15.11.2017 whereas the report was filed with minor delay of 13 days on 28.11.2017. The assessee attributed the delay to the fact that this being demonetization year, the auditor could not complete the audit in time. The bankers delayed the issuance of statement with details of demonetized currency. Nevertheless, the assessee cooperated with the department in completion of assessment and also paid the taxes levied on completion of assessment. However, rejecting the same, Ld. AO levied impugned penalty. 3. During appellate proceedings, the assessee submitted that in terms of Sec.273B, penalty would not be leviable if the assessee proves that there was reasonable cause for such failure. However, not convinced, Ld. CIT(A) confirmed the impugned penalty against which the assessee is in further appeal before us. 4. Upon perusal of factual matrix as stated above, it could be seen that the assessee has cooperated during assessment proceedings and no other infraction has been shown against the assessee. There is minor delay of 13 days only. It is also discernible that the assessee has paid the due taxes after completion of assessment. The explanation that this being demonetization year, the bankers delayed in issuing statements is also a reasonable explanation. Therefore, it is not a fit case for imposition of penalty. We order so. ITA No.324/Chny/2023 - 3 - 5. The appeal stands allowed in terms of our above order. Order pronounced on 25 th April, 2023. Sd/- ( MANOMOHAN DAS) ाियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे7ई / Chennai; िदनांक / Dated : 25-04-2023 DS आदेश की Sितिलिप अ /ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF