Delay in filing Tax Audit Report is a Technical Venial Breach: ITAT 271B deletes Penalty

ITAT 271B : Delay in filing Tax Audit Report is a Technical Venial Breach: ITAT deletes Penalty


The ITAT Kolkata bench has held that the delay in filing of the tax audit report is a technical venial breach for which, the penalty under Section 271B of the Income Tax Act is not sustainable.

Application for condonation of delay under proviso to Section 128(1) of the Customs Act, 1962

The Tribunal observed that “this decision was rendered in the context of adjudication of the quantum of deduction of the assessee. Hence the said analogy could very well be drawn and used in penalty proceedings like that of the assessee. To conclude, we hold that the assessee had committed only technical venial breach for which he could not be penalized.

Salary to Lectures / Staff of College subject to TDS u/s 192: ITAT

In view of the aforesaid observation and respectively following the decision of the Hon’ble Madras High Court in the case of Commissioner of Income-tax v. A.N. Arunachalam (supra), we direct the ld. Assessing Officer to delete the penalty levied u/s 271B of the Act.”