ITAT confirms Penalty since Assessee failed to Furnish Audit Report despite CBDT extended Due Date [Read Order]

Form 10B - Tax Audit Report

The Cochin bench of the Income Tax Appellate Tribunal ( ITAT ) has confirmed the penalty since assessee failed to furnish Audit Report despite CBDT extended due date.

The assessee M/s.The Vaikom Palliprethussery Service Cooperative Bank Limited Palliprethussery  is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. It is engaged in the business of banking.

For the assessment year 2014-2015, the return of income was filed on 15.01.2016 declaring Nil income after claiming deduction u/s 80P(2)(a)(i) of the I.T.Act amounting to Rs.3,44,41,274. The assessment u/s 143(3) of the I.T.Act was completed vide order dated 06.12.2016. During the course of assessment proceedings it was noticed that the assessee has not filed the Audit Report as mandated u/s 44AB of the I.T.Act. Therefore, penalty notice was issued u/s 274 r.w.s. 271B of the I.T.Act.

While dismissing the appeal, the Tribunal bench comprising of Judicial Member George George.K and Accountant Member Chandra Poojari observed that, “In the instant case for the relevant assessment year the Co-operative Department had audited the assessee’s case and submitted a report on 24.09.2014. The assessee had sufficient time to file audit report u/s 44AB of the I.T.Act within the specified date, which is 30th day of December, immediately following the financial year, i.e. 30.09.2014. However, for the relevant assessment year the Central Board of Direct Taxes vide its order dated 20.08.2014 had extended the due date of filing of the audit report from 30.09.2014 to 30.11.2014. The assessee had not filed the audit report in this case. The assessee was very casual and did not enter appearance for the show cause notice issued for imposition of penalty. The assessee has not made out a reasonable cause as mentioned u/s 273B of the I.T.Act for non-furnishing of audit report u/s 44AB of the I.T.Act. Hence, we are of the view that the penalty u/s 271B of the I.T.Act has been rightly imposed. It is ordered accordingly”.

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