MURUGESAN SANTHI, CHENNAI V. ITO, CHE-C-(141)(1), CHENNAI

ITA 585/CHNY/2023

AI Insights

The case involves Mrs. Murugesan Santhi, who appealed against the penalty imposed under section 271B of the Income Tax Act for failing to get her accounts audited as required under section 44AB, due to her turnover exceeding the prescribed limit. The penalty of Rs. 1.50 Lacs was confirmed by the CIT(A) and was initially levied by the Assessing Officer. The tribunal noted the absence of the appellant during the hearing but decided to restore the appeal to the CIT(A) to provide another opportunity for the assessee to present her case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134117 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-08-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 08-05-2023
• Laws Referred To: Section 271B, Section 44AB, Section 273B
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPTHA M.S. LD
• Section: 273B; 271B

Judgement Text

आयकर अपीलीय अिधकरण “ए” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.585/Chny/2023 (िनधा)रण वष) / As sessment Year: 2019-20) Mrs. Murugesan Santhi C/o.Somasundaram & Sivaraman CAs, 10,E Block, Kartik Apts, 46, Vijayaragava Road, Chennai-600 017. बनाम / V s . ITO CHE-C-141(1), Chennai. थायीलेखासं./जीआइआरसं./PAN/GIR No. AXLPS-0206-N (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : None थ कीओरसे/Respondent by : Ms. Deeptha M.S. (JCIT)-Ld.DR सुनवाईकीतारीख/Date of Hearing : 31-08-2023 घोषणाकीतारीख /Date of Pronouncement : 31-08-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [CIT(A)] dated 15-03- 2023 confirming penalty u/s 271B for Rs.1.50 Lacs. The impugned penalty has been levied by Ld. AO vide order dated 24-01-2022. At the time of hearing, none appeared for assessee. The Ld. Sr. DR submitted that penalty was mandatory in nature and therefore, the impugned order 2 ITA No.585/Chny/2023 may be confirmed. Having considered material on record, the appeal is disposed-off as under. 2. The impugned penalty stem from the facts that the assessee being resident individual filed return of income on 19-03-2020 declaring income of Rs.14.01 Lacs. Since the turnover was Rs.300.76 Lacs, the assessee was required to get his accounts audited u/s 44AB. The assessee failed to do so and accordingly, the impugned penalty was triggered and levied against the assessee. The Ld. CIT(A) upheld the same against which the assessee is in further appeal before us. 3. We find that the assessee has failed to adduce any reasonable cause u/s 273B for violation of provisions of Sec.44AB. However, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity of hearing to the assessee to substantiate its stand. Accordingly the appeal is restored back to the file of ld. CT(A) for fresh adjudication with a direction to the assessee to substantiate its case. 4. The appeal stand allowed for statistical purposes. Order pronounced on 31 st August, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा ! /VICE PRESIDENT लेखासद( / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 31-08-2023 DS आदेशकीJितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु