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Section 273B of the Income-tax Act, 1961 - Penalty - Not to be imposed in certain cases Where, though tax audit report was ready before due date, yet it was filed late along with return which was delayed because assessee had misplaced advance tax challan tribunal's finding that there was a sufficient cause for belated filing of tax audit report was a finding of fact [A.Y 2001-02] The assessee-firm had filed tax audit report under section 44AB on 31-12-2001 but had misplaced the tax challan. Therefore, the return could not be filed in time and the tax audit report was also not filed in time, even though it was ready before the due date. An affidavit was also filed by the assessee stating that the advance tax challan had been misplaced by the accountant of the concern who was trying to locate the same. The reason given by the assessee was accepted by the Tribunal and it after considering the materials and evidence, had come to the conclusion that there was a reasonable cause in filing the report belatedly. Held that if the assessee showed sufficient cause for belated filing of audit report, it not to be subject to levy of penalty under section 271B. In the instant case, the explanation offered by the assessee was accepted by the Tribunal as being a sufficient one. There was only a delay of two months. Whether there was a sufficient cause for belated filing of a report or not, was a pure question of fact. The Tribunal's finding, that there was a sufficient cause for belated filing of the tax audit report, finding given by the Tribunal, was based on valid materials and evidence and there was no error or illegality in order its so as to warrant interference. JUDGMENT P.P.S. Janarthana Raja, J.-This appeal is filed under section 260A of the Income-tax Act, 1961, by the Revenue, against the order of the Income-tax Appellate Tribunal, Bench "D", Chennai in I.T.A. No. 1522/Mds/2004 dated September 28, 2006, raising the following substantial questions of law: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Tribunal was right in law in deleting the penalty imposed under section 271B of the Income-tax Act for the assessment year 2001-02 was…

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