A person fails to furnish audit report under section 92E of the Income Tax Act, 1961. The Income Tax Officer inmposes penalty on the assessee. Assessee challenges the penalty stating that there was reasonable cause for n

As per section 271BA of the Income-tax Act, 1961 "the Act", if any person fails to furnish audit report as required under section 92E of the Act, then the assessing officer may direct that such person shall pay, by way of penalty, a sum of ₹ 1 lakh. However, as per section 273B of the Act, penalty shall not be levied if the assessee proves that there was reasonable cause for such failure. In this case, as the assessee is able to proves genuine reasonable cause of failure to furnish report u/s 92E, the assessing officer is not justified in imposing the penalty.