ITAT deletes Impugned Penalty on grounds of there being Sufficient Cause u/s 273 for failure to upload return of Income Electronically [Read Order]
![ITAT deletes Impugned Penalty on grounds of there being Sufficient Cause u/s 273 for failure to upload return of Income Electronically [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/09/ITAT-penalty-ITAT-deletes-impugned-penalty-on-grounds-of-there-being-sufficient-failure-to-upload-return-of-income-electronically-return-of-income-income-electronically-taxscan.jpg "ITAT deletes Impugned Penalty on grounds of there being Sufficient Cause u/s 273 for failure to upload return of Income Electronically [Read Order]")
The Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that depending on auditor for uploading of the return along with return of income, is sufficient cause within the meaning of Section 273B of the Income Tax Act for failure of uploading return electronically. The impugned penalty stem from the facts that the assessee is a partnership firm carrying on business of running...
The Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that depending on auditor for uploading of the return along with return of income, is sufficient cause within the meaning of Section 273B of the Income Tax Act for failure of uploading return electronically.
The impugned penalty stem from the facts that the assessee is a partnership firm carrying on business of running a poultry farm. The assessee, in response to notice under Section 142(1) of the Income Tax Act, filed Tax Audit Report dated 20-08-2017 on 25-11-2019 electronically. However, due to technical issues, the return could not be uploaded electronically. The AO, framed assessment on best judgment basis on 22-11-2019 and triggered impugned penalty under Section 271B for failure to get the accounts audited under Section 44AB. Rejecting assessee’s submissions, . AO levied impugned penalty of Rs.1.50 Lacs.
During appellate proceedings, the assessee submitted that there was reasonable cause under section 273B since the work was entrusted to the auditor. However . CIT(A) held that penalty was mandatory in nature and accordingly, confirmed the impugned penalty. Aggrieved, the assessee appealed before the tribunal.
After hearing both sides, the two member bench of the tribunal consisting of Mahavir Singh (Vice president) and Manoj Kumar Aggarwal (Accountant member) observed that the assessee got his accounts audited and obtained Tax Audit Report on 20-08-2017. The same was uploaded electronically on 25-11-2019. However the return of income could not be furnished due to technical issues. The assessee was depended on auditor for uploading of the return along with return of income. Therefore, the same, is sufficient cause within the meaning of Section 273B and therefore, not a fit case for imposition of penalty, the bench held. By deleting the impugned penalty, the appeal was allowed.
To Read the full text of the Order CLICK HERE
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M/s. S. A. Poultry Farms vs ITO , 2023 TAXSCAN (ITAT) 2273