Kewalchand Navarathanmal, Gudiyattam Chennai V. Assenssing officer, Chennai

ITA 804/CHNY/2023

AI Insights

The case involves an appeal by Kewalchand Navarathanmal against the order of the Commissioner of Income Tax (Appeals), which confirmed a penalty of Rs. 1.50 Lacs under Section 271B for non-compliance with Section 44AB regarding tax audit requirements for the Assessment Year 2017-18. The assessee argued that it was the first year of a tax audit and there was a delay in appointing the auditor, which was not accepted by the Assessing Officer (AO) or the CIT(A). The tribunal found merit in allowing the appeal for statistical purposes and remanding the case back to the CIT(A) for further examination with additional submissions from the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134389 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-08-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 09-07-2023
• Laws Referred To: Section 271B, Section 44AB
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R.LOKESH LD
• Section: 271B; 9(1); 9(1); 9(1)

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय ी वी. द ु गा राव, ाियक सद एवं माननीय ी मनोज कुमार 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.804/Chny/2023 (िनधा रण वष / As sessment Year: 2017-18) Kewalchand Navarathanmal 89, Santhapet, Gudiyattam-632 602 बनाम/ V s. ITO Non-Corporate Ward 9(1) Chennai. था यी ले खा सं. /जी आ इ आ र सं. /P A N / G I R No . AABPN-42 77- H (अपीलाथ /Appellant) : (!"थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri R.Lokesh (CA) – Ld. AR !"थ कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 28-08-2023 घोषणाकीतारीख /Date of Pronouncement : 28-08-2023 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 02-03- 2023 confirming penalty u/s 271B for Rs.1.50 Lacs. The impugned penalty has been levied by Ld. AO vide order dated 22-02-2022. 2. The registry has noted a delay of 70 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of condonation petition. Though Ld. Sr. DR opposed the condonation, the 2 bench deems it fit to condone the delay and admit the appeal for adjudication on merits 3. The impugned penalty stem from the facts that the assessee failed to comply with the provisions of Sec. 44AB. Before Ld. AO, the assessee submitted that this was the first year of Tax Audit and there was delay in appointing the auditor. However, the plea was rejected. The penalty was confirmed by Ld. CIT(A) on the ground that the assessee did not submit any supporting document to establish the date when the books were actually audited. The assessee could not show any reason for non- compliance. Aggrieved, the assessee is in further appeal before us. 4. After perusal of case records and considering the impugned order, we deem it fit to restore the matter back to the file of Ld. CIT(A) with a direction to the assessee to substantiate its case by filing the requisite details. The ld. CIT(A) shall re-adjudicate the issue in the light of assessee’s submissions. 5. The appeal stand allowed for statistical purposes. Order pronounced on 28 th August, 2023. Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) ाियक सद /JUDICIAL MEMBER लेखासद / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 28-08-2023 DS आदेशकीUितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. !"थ /Respondent 3. आयकरआयु=/CIT 4. िवभागीय!ितिनिध/DR 5. गाडBफाईल/GF