S A POULTRY FARMS, KANCHEEPURAM V. ITO WARD2, KANCHEEPURAM

ITA 632/CHNY/2023

AI Insights

The case involves M/s. S. A. Poultry Farms, a partnership firm engaged in running a poultry farm, which faced a penalty under section 271B for not getting their accounts audited as required under section 44AB of the Income Tax Act. The assessee had obtained a Tax Audit Report but failed to upload the return electronically due to technical issues, which led to the imposition of a penalty by the Assessing Officer (AO). The Commissioner of Income Tax (Appeals) upheld the penalty, leading the assessee to appeal before the Income Tax Appellate Tribunal. The Tribunal, considering the circumstances and the reliance on the auditor for the electronic filing, ruled in favor of the assessee, citing a reasonable cause under section 273B.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134122 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 9 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: 2017-2018
• Appeal Filed On: 21-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 273B; 271B

Judgement Text

आयकर अपीलीय अिधकरण “ए” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय ी महावीरिसंह, 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.632/Chny/2023 (िनधा)रण वष) / As sessment Year: 2017-18) M/s. S. A. Poultry Farms 54/11, Vegavathi Nathi Street, Kancheepuram-631 501. बनाम / V s . ITO Ward-2, Kancheepuram. थायीलेखासं./जीआइआरसं./PAN/GIR No. ABYFS-5320-A (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) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [CIT(A)] dated 29-03- 2023 confirming penalty u/s 271B for Rs.1.50 Lacs. The impugned penalty has been levied by Ld. AO vide order dated 23-06-2021. 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 may be confirmed. Having considered material on record, the appeal is disposed-off as under. 2 ITA No.632/Chny/2023 2. The impugned penalty stem from the facts that the assessee is a partnership firm carrying on business of running a poultry farm. The assessee, in response to notice u/s 142(1), filed Tax Audit Report dated 20-08-2017 on 25-11-2019 electronically. However, due to technical issues, the return could not be uploaded electronically. The Ld. AO, framed assessment on best judgment basis on 22-11-2019 and triggered impugned penalty u/s 271B for failure to get the accounts audited u/s 44AB. Rejecting assessee’s submissions, Ld. AO levied impugned penalty of Rs.1.50 Lacs. 3. During appellate proceedings, the assessee submitted that there was reasonable cause u/s 273B since the work was entrusted to the auditor. However Ld. CIT(A) held that penalty was mandatory in nature and accordingly, confirmed the impugned penalty. Aggrieved, the assessee is in further appeal before us. 4. We find that the assessee got his accounts audited and obtained Tax Audit Report on 20-08-2017. The same was uploaded electronically on 25-11-2019. However the return of income could not be furnished due to technical issues. The assessee was depended on auditor for uploading of the return along with return of income. Therefore, the same, in our considered opinion, is sufficient cause within the meaning of Sec. 273B and therefore, not a fit case for imposition of penalty. By deleting the impugned penalty, we allow the appeal. 3 ITA No.632/Chny/2023 5. The appeal stand allowed. 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