Sohanaa International Pvt Ltd vs ACIT Circle-24(1), New Delhi: Penalty under Section 271B

Sohanaa International Pvt Ltd vs ACIT Circle-24(1), New Delhi: Penalty under Section 271B

Case Number: ITA 5797/DEL/2019
Appellant: Sohanaa International Pvt Ltd, New Delhi
Respondent: ACIT Circle-24(1), New Delhi
Assessment Year: 2010-11
Result: Appeal dismissed
Case Filed on: 2019-07-03
Order Type: Final Tribunal Order
Date of Order: 2022-12-12
Pronounced on: 2022-12-12

Introduction

This appeal by Sohanaa International Pvt Ltd (the appellant) pertains to the assessment year 2010-11 and is directed against the order dated 14.06.2019, passed by the learned Commissioner of Income-tax (Appeals) [CIT(A)]-8, New Delhi, confirming the penalty imposed under section 271B of the Income-tax Act, 1961 (the Act). The appeal was heard on 6th December 2022 and pronounced on 12th December 2022 before the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’, New Delhi.

Background

The appellant filed an appeal against the penalty order imposed by the Assistant Commissioner of Income Tax (ACIT), Circle-24(1), New Delhi, for the assessment year 2010-11. The penalty was imposed for non-compliance with the provisions of section 44AB of the Act, which mandates obtaining and furnishing a tax audit report within the stipulated time.

Grounds of Appeal

The appellant raised the following grounds:

1. The CIT(A) erred in dismissing the appeal against the penalty order passed by the ACIT under section 271B of the Act.
2. The CIT(A) erred both in law and on facts in sustaining the penalty amounting to Rs. 56,257/-.
3. The CIT(A) failed to consider that the tax audit report under Form 3CA and 3CD was duly furnished during the assessment proceedings.
4. The CIT(A) misinterpreted the requirements of section 44AB of the Act read with rule 12(2) of the Income Tax Rules regarding the obtaining of the tax audit report.
5. The order passed by the CIT(A) is erroneous in law and on facts and deserved to be deleted.
6. The appellant craves leave to add or amend any ground of appeal.

Hearing and Proceedings

The hearing was held on 6th December 2022. None appeared on behalf of the appellant, and no adjournment application was filed. The tribunal proceeded to decide the appeal based on the submissions made by the learned Departmental Representative (DR), Shri Abhishek Kumar.

Findings of the CIT(A)

The CIT(A) confirmed the penalty imposed by the ACIT under section 271B for not complying with the requirements of section 44AB of the Act. The CIT(A) observed that the audit report dated 28.09.2010 was furnished only on 04.10.2017, which was beyond the due date of 30.09.2010. The CIT(A) concluded that the appellant had not provided any justification for the delay in furnishing the audit report and upheld the penalty of Rs. 56,257/-.

Respondent’s Arguments

The learned DR supported the orders of the lower authorities, emphasizing that the appellant failed to comply with the statutory requirements of furnishing the tax audit report within the stipulated time.

Tribunal’s Decision

The tribunal, comprising Shri Shamim Yahya, Accountant Member, and Shri C.M. Garg, Judicial Member, reviewed the case and found no material to controvert the findings of the lower authorities. The tribunal observed that the appellant failed to comply with the provisions of section 44AB and did not furnish any valid justification for the delay. Consequently, the tribunal upheld the penalty imposed under section 271B and dismissed the appeal.

Conclusion

The tribunal’s decision to dismiss the appeal was pronounced on 12th December 2022. The tribunal confirmed the penalty imposed under section 271B of the Act due to the appellant’s failure to comply with the statutory requirements.

Order Pronounced in the Open Court on 12th December, 2022.

Signed:
Shamim Yahya, Accountant Member
C.M. Garg, Judicial Member

Dated: 12th December, 2022
dk

Copy Forwarded to:

1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR

Assistant Registrar, ITAT, New Delhi

Sohanaa International Pvt Ltd vs ACIT Circle-24(1), New Delhi: Penalty under Section 271B