Commissioner of Income Tax and Another vs Sardar Industries

This is an appeal u/s 260A of the Income Tax Act, 1961, against the impugned order of the Income Tax Appellate Tribunal for the assessment year 1986-87 passed on August 4, 1999.

The assessee is a registered firm and in the relevant assessment year it was required to obtain a copy of the audit report as per the requirement of Section 44AB of the Income Tax Act. The specified date for obtaining the audit report was October 31, 1986, which was the extended date fixed by the Central Board of Direct Taxes. Admittedly, the petitioner submitted the audit report on September 9, 1986, which was within the extended time. Hence, the Tribunal rightly held that the provision for penalty was not attracted. Moreover, the words "without reasonable cause" have been deleted from Section 271B by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, with effect from September 10, 1986. In the relevant assessment year the aforesaid words were there and the assessee had given adequate explanation for the delay in submitting its audit report. The Commissioner of Income Tax (Appeals) has accepted the explanation of the assessee about reasonable cause for the delay. There is no force in this appeal. It is dismissed.