Swaminath N Patil (ITA No. 576/PUN/2019 : A.Y. 2014-15)

Facts:

1. The A.O also noticed that the assessee had failed to file audit report within the prescribed date i.e. on or before 30-11-2014 (extended period) and had updated the audit report only on 22-01-2015.

2. Accordingly, the A.O had imposed penalty u/s 271B of the Act for non- compliance of the provisions of sec. 44AB of the Act.

3. The assessee stated that the accountant who was looking into the records of accounts was admitted in the hospital and even the Doctor‟s certificate was also enclosed and submitted as evidence. It was also explained that practically it was difficult to get an experienced accountant within the short period of time in a place like Akkalkot, Dist. Solapur and so penalty not be levied on account of delay in filing the audit report.

ITAT Pune held as under :

1. The reasons are definitely such that they were beyond the control of the assessee and since the Income-tax Act is a welfare legislation the practical difficulties of the tax payers assessee and the bonafide nature has to be considered.

2. In our considered view, the assessee in this case through documentary evidence has explained the reasonable cause and accordingly we set aside the order of the CIT(A) and direct the A.O to delete the penalty from the hands of the assessee.