Sec. 271B of Income Tax Act, 1961 - Penalty - The assessee had furnished the TAR belatedly on 31-03-2016 along with the return of income, which was accepted by the department and intimation u/s. 143(1) of the Act was issued. Pursuant to the show cause notice before imposing penalty, The assessee explained that delay happened due to the fact that for earlier year, the audit report could not be completed on time and could be completed only on 23-03-2016. This happened because the accountant of the assessee, who used to handle the accounts had suddenly left the office/service in earlier year without properly handing over the books maintained by the assessee. Therefore, there was reasonable cause for not filing the TAR within due date. Moreover, since, there has been several mistakes which has crept in the impugned penalty order of the AO, which shows total non- application of mind of necessary facts by the AO. Therefore, the penalty levied u/s. 271B cannot be sustained. Appeal of the assessee allowed. - NORTH EASTERN CONSTRUCTIONS V/s ITO - [2020] 206 TTJ 354 (ITAT-GUWAHATI)