Under section 271B of the Income Tax Act, 1961, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has deleted the tax penalty with respect to Air India Air Transport Services Ltd, a subsidiary of Air India.
The taxpayer possesses the Public sector company act and needs to submit its audit report in Form 3CA where the report u/s 44AB is needed to be submitted for the mentioned purpose. The tax audit report u/s section 44AB of the income tax act. The tax auditor should audit the taxpayer’s accounts only on the grounds of these audited accounts together with the information needed to be submitted in Form 3CD. As a public sector unit, the taxpayer firm post to the finish of the law audit beneath the companies act is needed to take the report by CAG.
The taxpayer accounts towards the year finish of 31.03.13 were not got final and audited prior to the mentioned date which is 30th September 2013. The law audit was finished only on the date 23rd Jan 2014 and the CAG reports were taken in March 2014, hence the tax audit report was made after April 2014 and the report u/s 44AB was taken on 17th September 2014. These objectives were mentioned by the taxpayer prior to AO and prior to Ld. CIT(A).
Kavitha Rajagopal, Judicial Member found, while holding in favor of the taxpayer, that the taxpayer has the reasonable cause to not get the accounts audited prior to the last date.
The situation was not under the control of the taxpayer and hence he wouldn’t get his accounts audited before the specified date. The assessee mentioned the causes for not getting his accounts audited to comply with the need for income tax section 44AB of the IT act. It would be the case in which we have the opinion that it would not a good case to impose the penalty u/s 271B of the Act. The Tribunal said we thus, set aside the order of Ld. CIT(A) and refuse the impugned penalty order,
