JYOTI AGARWAL Vs. ITO

JUDGEMENT

(1.) Penalty proceedings under the provisions of section 271B of the Income Tax Act, 1961 (hereinafter referred to as the Act) were initiated against the assessee, since she allegedly failed to file the audit report on or before the due date of filing the return for the assessment year 1997-98, that is, before 31-10-1997. In response to the show-cause notice issued, she filed her written explanation wherein she claimed that audit report was sent by her on 25-10-1997, by post under certificate of posting. This explanation did not find favours with the taxing authorities and a penalty of Rs. 41,768 was imposed on her vide order dated 25-3-1999. She assailed the said order before the Commissioner (Appeals), who declined her appeal vide his order dated 7-11-2000. Now the assessee seeks indulgence of this Tribunal by way of this second appeal, claiming that the orders of the learned lower authorities are not in consonance with the provisions of law.

(2.) When the appeal came up for hearing Shri R.M. Kumar, advocate had advanced arguments on behalf of the appellant. Shri P.C. Mishra, the learned Senior Departmental Representative presented his point of view on behalf of the revenue. We have given our careful considerations to the arguments advanced at the bar and cautiously perused the record. Our findings on the issue are as under:

(3.) The appellant was required to file the tax audit report on or before 31-10-1997, her claim has been that she received the audit report on 25-10-1997, at Patna. After receipt of the audit report, she rushed to Arrah to submit it before the taxing authorities, but could not do so since the offices were closed on account of being Saturday. She anticipated that 26-10-1996 was Sunday and 28th October was Dhantehrash and 30th October was Diwali festivals. On account of her engagement in business activities as well as Puja ceremony she thought it expedient to send the tax audit report by post. Accordingly, she reached post office Arrah and sent the tax audit report to the Income Tax Officer, Ward-Arrah under certificate of posting. She also filed her affidavit before the Income Tax Officer, swearing therein that tax audit report was sent by post under certificate of posting. As referred above, these facts were not appreciated by the lower authorities and it was found to be a fit case for imposition of penalty to the tune of Rs. 41,768.