ABDUL SALAM SATHIK BATCHA, GOBICHETTYOALAYAM V. ITO,WARD-2(1), ERODE

ITA 748/CHNY/2023

AI Insights

Mr. Abdul Salam Sathik Batcha, the appellant, was penalized by the Assessing Officer under section 271B for filing the Tax Audit Report beyond the due date prescribed under section 44AB for the Assessment Year 2017-18. The penalty of Rs. 1.5 Lacs was confirmed by the Commissioner of Income Tax (Appeals) but was contested in the Income Tax Appellate Tribunal. The Tribunal, referencing a precedent where a similar penalty was deemed inappropriate, decided in favor of the appellant, leading to the deletion of the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134284 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 18-06-2023
• Other Referred Cases: Shri Ramunaicker Raja vs. ACIT (ITA No. 603/Chny/2022 dated 15-02-2023)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271B

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी वी. द ु गा राव, ाियक सद! एवं माननीय ी मनोज कु मार अ&वाल ,लेखा सद! के सम)। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.748/Chny/2023 (िनधा रण वष / As sessment Year: 2017-18) Mr. Abdul Salam Sathik Batcha 574, Prop. Sun Industries, Masha Allah Garden, P.Vellalapalayam(P.O) Gobichettipalayam-638 476. बनाम / V s . ITO Ward-2(1) Erode. था यी ले खा सं . / जी आ इ आ र सं . / P A N / G I R N o . BDLPS-3 164 -C (अपीलाथ /Appellant) : (!"थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri S.Sridhar (Advocate-Erode)-Ld.AR !"थ कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)- Ld.DR सुनवाईकीतारीख/Date of Hearing : 25-07-2023 घोषणाकीतारीख /Date of Pronouncement : 25-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271B for Rs.1.5 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)] on 14-03-2023 in the matter of impugned penalty levied by Ld. Assessing Officer [AO] u/s. 271B of the Act vide order dated 24-06-2021. 2 ITA No.748/Chny/2023 2. The Registry has noted the delay of 37 days in the appeal, the condonation of which has been sought by the assessee on the strength of affidavit of the assessee. The Ld. DR opposed the condonation of delay. However, keeping in view the period of delay and contents of the affidavit, we condone the delay and admit the appeal for adjudication on merits. 3. The impugned penalty stem from the fact that the assessee filed Tax Audit Report on 20.03.2018 which was beyond due date as prescribed u/s 44AB. Invoking the provisions of Sec.271B, Ld. AO levied penalty of Rs.1.50 Lacs which was confirmed by Ld. CIT(A). Aggrieved, the assessee is in further appeal before us. 4. From the facts, it emerges that the copy of Tax Audit Report was filed along with return of income and the same was also furnished during the course of assessment proceedings. On similar facts, the decision of this Tribunal in Shri Ramunaicker Raja vs. ACIT (ITA No. 603/Chny/2022 dated 15-02-2023) supports the case of the assessee wherein it was held that it is not a fit case for levy of penalty. Following the same, we delete the impugned penalty. 5. The appeal stand allowed. Order pronounced on 25 th July, 2023 Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) ाियक सद!/JUDICIAL MEMBER लेखासद! / ACCOUNTANT MEMBER चे5ई Chennai; िदनांक Dated : 25-07-2023 DS आदेशकीUितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. !"थ /Respondent 3. आयकरआयु>/CIT 4. िवभागीय!ितिनिध/DR 5. गाडC फाईल/GF