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Delhi ITAT: Section 271B Penalty Cannot Survive Due to Court-Monitored Management Disputes
['Author Info', 'Name', 'Qualification', 'Company', 'Location', 'Articles Published', 'View Full Profile', 'More Ca Vijayakumar Shetty', 'August']
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AdvertisementD B Engineering Pvt.
Ltd. Vs ACIT (ITAT Delhi) Delhi ITAT: Penalty Under Section 271B Cannot Survive Where Delay in Tax Audit Was Due to Court-Monitored Management Disputes The Delhi ITAT deleted the penalty of ₹1.50 lakh under Section 271B, holding that where the assessee establishes a reasonable cause for the delay in obtaining the tax audit and filing the return, the protection under Section 273B squarely applies.
The assessee-company failed to furnish the tax audit report within the prescribed time due to serious disputes among its directors, which had resulted in litigation before the D...