Suresh Govind Bhoi, Kolhapur V. The Income Tax Officer, Ward-1(2), Kolhapur

ITA 374/PUN/2023

AI Insights

The case involves appeals by Suresh Govind Bhoi against penalties imposed for the late filing of audit reports for the assessment years 2016-17 and 2017-18. The penalties were initially levied by the Assessing Officer under Section 271B of the Income Tax Act, which mandates penalties for failure to furnish audit reports within the prescribed time. The assessee argued that the delays were due to medical emergencies affecting both himself and his CA. The Tribunal, after considering the medical conditions and treatments documented, concluded that there was a reasonable cause for the delays and thus allowed the appeals, removing the penalties.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134473 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-05-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 02-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 271B

Judgement Text

आयकर अपीलीय अिधकरण ”बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No’s.374 & 375/PUN/2023 िनधाᭅरण वषᭅ / Assessment Years : 2016-17 & 2017-18 Suresh Govind Bhoi, Precise Cables, W 6 MIDC, Gokul Shirgaon, Kolhapur – 416 234. PAN: ABDPB 1637 N Vs The Addl/Jt/Dy/ACIT National e Assessment Centre. Assessee/ Appellant Respondent /Revenue Assessee by None Revenue by Shri M.G.Jasnani – DR Date of hearing 15/05/2023 Date of pronouncement 26/06/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: These twin appeals are filed by the assessee against the separate orders of ld.Commissioner of Income Tax(Appeal) National Faceless Appeal Centre[ld.CIT(A)], Delhi both dated 09.02.2023 for A.Y.2016-17 and AY 2017-18 emanating from separate orders u/s.271B dated 02/01/2022. The grounds of appeal raised by the assessee for A.Y.2016-17 are as under : “1. On the facts and in the circumstances of the case and in law the Ld.CIT (A) is not justified in confirming the penalty of Rs. 82,374/- u/s 271B of the Act when the assessee has reasonable cause for non-filing of audit report within prescribed time ITA No’s.374 & 375/PUN/2023 Suresh Govind Bhoi [A] 2 accordingly penalty levied may please be deleted. 2. On the facts and in the circumstances of the case and in law the Ld.CIT (A) failed to appreciate that there are compelling situation which prevented assessee from filing audit report within prescribed time. 3. The appellant craves, to consider each of the above grounds of appeal without prejudice to each other and craves leave to add, alter, delete or modify all or any of the above grounds of appeal.” 2. The grounds of appeal raised by the assessee for A.Y.2017-18 are as under : “1. On the facts and in the circumstances of the case and in law the Ld.CIT (A) is not justified in confirming the penalty of Rs. 81098/- u/s 271B of the Act when the assessee has reasonable cause for non-filing of audit report within prescribed time accordingly penalty levied may please be deleted. 2. On the facts and in the circumstances of the case and in law the Ld.CIT (A) failed to appreciate that there are compelling situation which prevented assessee from filing audit report within prescribed time. 3. The appellant craves, to consider each of the above grounds of appeal without prejudice to each other and craves leave to add, alter, delete or modify all or any of the above grounds of appeal.” Findings and Analysis : 3. We have heard both these appeals together as the issue involved is same i.e Penalty u/s.271B. We have heard Ld.Departmental Representative(ld.DR) of the Revenue and perused the records. The Assessing Officer(AO) has levied Penalty u/s 271B for AY 2016-17 and AY 2017-18 on account of delay in filling Audit report. The details are as under : ITA No’s.374 & 375/PUN/2023 Suresh Govind Bhoi [A] 3 AY Date of Filling Audit Report Statutory date of filling Audit report as mentioned in the Penalty Order 2016-17 26/11/2018 17/10/2016 2017-18 26/11/2018 07/11/2017 4. Before the AO during the Penalty proceedings the Assessee has submitted elaborate reply to explain the medical illness of the Assessee’s CA and Assessee himself. The Assessee has submitted that the CA was suffering from multiple medical conditions i.e.Gout, Degenerative Disc Disease, Bilateral Osteo Arthritis of Knee during the year. The CA was taking treatment at Kolhapur Orthopedic Centre. MRI was done on 31/08/2016. The assessee also had to get admitted in Mahalaxmi Hrudayala Kolhapur on account of medical problems. 5. On perusal of elaborate reply of the assessee, which is part of the Penalty order, explaining the Medical issues faced by the CA and assessee himself, we are of the opinion that there was reasonable cause for delay in filling the Audit report. 6. As per Section 273B of the Act, no penalty u/s.271B shall be imposed if assessee proves that there was reasonable cause for the failure. In this case, the assessee has established that there was reasonable cause for delay in filling the Audit Report. Hence, we direct the AO to delete the Penalty u/s.271B for A.Y.2016-17 and ITA No’s.374 & 375/PUN/2023 Suresh Govind Bhoi [A] 4 A.Y.2017-18. Accordingly, grounds of Appeal raised by the Assessee are allowed. 7. In the result, both appeals i.e. for A.Y. 2016-17 & 2017-18 of the assessee are allowed. Order pronounced in the open Court on 26 th June, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 26 th June, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.