No Penalty Can Be Levied U/S 271B Of IT Act If No Prejudice Is Caused To Dept On Account Of Belated Furnishing Of Audit Report: Kerala HC
2 weeks ago

No Penalty Can Be Levied U/S 271B Of IT Act If No Prejudice Is Caused To Dept On Account Of Belated Furnishing Of Audit Report: Kerala HC

Live Law  

The Kerala High Court held that circumstances under which AO can absolve a taxpayer from payment of penalty u/s 271B are discernible from a reading of Sec 273B, which states that no penalty can be imposed on an assessee u/s 271B for breach of the provisions, if he proves that there was "reasonable cause" for the said failure. The Division Bench of Justice Dr. A K Jayasankaran Nambiar and Justice K V Jayakumar observed that no penalty shall be imposed on assessees u/s 271B, if no prejudice is caused to Revenue Department on account of any belated furnishing of audit report as per Sec 44AB. Facts of the case: The Bench observed that the moot question is whether the assessee societies had demonstrated a reasonable cause for the delay in submitting audit reports as mandated u/s 44AB before the AO? The Bench found that the AO, at first instance, did not even look into the aspect of "reasonable cause" and proceeded to confirm the penalty on the assumption that penalty u/s 271B was automatic whenever there was a delay in submission of the audit report beyond the prescribed due date.

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History of this topic

Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court
1 month, 4 weeks ago

Consequential Order Passed By Assessing Authority Beyond Terms Of Remand By Commissioner Is Unacceptable: Kerala High Court

Live Law  

The Division Bench of Kerala High Court comprising Justices A.K. observed that “the concern of the Assessing Authority, while passing a consequential order, has to be limited to those specific issues that have been remanded to it for consideration by the Commissioner……….” Section 263 of the Income Tax Act, 1961 empowers the Commissioner of Income Tax to revise any order …

Assessment Can Be Reopened Based On Audit Objections Under New Reassessment Regime: Kerala High Court
9 months ago

Assessment Can Be Reopened Based On Audit Objections Under New Reassessment Regime: Kerala High Court

Live Law  

The Kerala High Court has held that assessments can be reopened based on audit objections under a new reassessment regime.The bench of Justice Dinesh Kumar Singh has observed that the provisions have been drastically changed with effect from April 1, 2022, and the audit objection is one of the reasons for re-opening the assessment. The Kerala High Court has held …

Taxpayer Can't Be Penalised For Failure To Get Its Books Of Accounts Audited If There Exists Reasonable Cause For Such Failure: Jaipur ITAT
9 months, 3 weeks ago

Taxpayer Can't Be Penalised For Failure To Get Its Books Of Accounts Audited If There Exists Reasonable Cause For Such Failure: Jaipur ITAT

Live Law  

While allowing the appeal against the order passed u/s 271B of the Income tax Act, the Jaipur ITAT held that provision of section 273B gives power to the taxing authority not to impose the penalty if the assessee proves that there was a reasonable cause for failure to get the books of accounts audited and directed the AO to delete …

Appearance Of AR Not Enough For Presuming Service On Assessee Under S. 292BB Of ITA: Orissa High Court
1 year, 10 months ago

Appearance Of AR Not Enough For Presuming Service On Assessee Under S. 292BB Of ITA: Orissa High Court

Live Law  

The Orissa High Court has deprecated the Income Tax Authority who, despite being informed that the assessee was in judicial custody, failed to serve a notice upon him through the Superintendent of the concerned jail, in the proceedings initiated against the assessee under Section 263 of the Income Tax Act, 1961. The Court further ruled that appearance of the authorized …

Delayed Audit Report Due To the Delay By Statutory Auditors: ITAT Deletes Penalty
2 years, 7 months ago

Delayed Audit Report Due To the Delay By Statutory Auditors: ITAT Deletes Penalty

Live Law  

The Cuttack Bench of the Income Tax Appellate Tribunal has deleted the penalty where the assessee has sufficient and reasonable cause for delay in obtaining the audit report. The two-member bench of George Mathan and Arun Khodpia has observed that the delay in submitting the audit report was on account of a delay in obtaining the audit report from the …

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