Section 271B of Income Tax Act, 1961— The assessee has filed this appeal challenging the order passed by CIT(A) confirming the penalty levied by the AO u/s 271B of the Act for assessment year 2014-15 for not furnishing the tax audit report as required u/s 44AB of the Act, i.e., within the due date prescribed u/s 139(1) of the Act for filing return of income.

Held that— the audit report was obtained within the due date prescribed u/s 44AB of the Act. The delay has occurred due to delay in filing return of income.

The assessee has stated that it was under bonafide belief that the audit report could also be filed before 31.3.2015. There is also no dispute with regard to the fact that the audit report was available with the assessing officer before he completed the assessment.

Hence the view taken by the Cochin bench of Tribunal that the delay in furnishing audit report has resulted only in technical venial breach which does not cause any loss to exchequer could be applied here also. Accordingly, following the above said decision of Cochin bench of Tribunal, we set aside the order passed by Ld CIT(A) and direct the AO to delete the penalty levied u/s 271B of the Act for the year under consideration.[ARKA EDUSERVE PVT. LTD. VERSUS THE INCOME-TAX OFFICER, WARD-1 (1) (2) , BENGALURU.] [2019] 20 ITCD Online (15) [ ITAT BANGALORE]