This case review examines the decision made by the ITAT Delhi in the matter of Sumit Goel vs. ITO, Ward-51(5), Delhi, concerning the assessment year 2017-18. The primary issue was the penalty imposed for the delay in submitting the mandatory audit report required under section 44AB of the Income Tax Act.
Sumit Goel, engaged in the bakery and confectionary business, faced a penalty for not submitting the audit report by the extended deadline. The delay was attributed to unforeseen circumstances, including the sudden departure of the accountant responsible for the audit.
The assessee argued that the delay was beyond his control and should not attract a penalty, citing consistent compliance in previous years. The tribunal reviewed the circumstances and the submissions made by both parties, focusing on whether the delay constituted a reasonable cause under the provisions of the Income Tax Act.
The tribunal considered various judgments and the assessee’s history of compliance. It noted that the assessee had a credible track record, and the delay was an isolated incident caused by exceptional circumstances. Furthermore, the tribunal examined the impact of the delay on the revenue and found no adverse effects.
The penalty imposed by the lower authorities was overturned by the tribunal, highlighting the importance of considering the context and the specific facts in penalty proceedings. The tribunal’s decision underscored the need for a balanced approach in the enforcement of compliance regulations.
Sumit Goel vs. ITO, Ward-51(5), Delhi: Penalty for Delayed Audit Report – ITA 2514/DEL/2022
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform