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2012 (4) TMI 173 - AT - Income TaxArm's Length Price - found some international transactions exceeding the limit prescribed in the assessee's return and a reference to TPO for determination of arms length price - TPO issued a letter to assessee to furnish required information as per s. 92D and 92E of the Act - assessee filed documents after the statutory time limit of 30 days - A.O. levied a penalty under Section 271G of the Act - as per the assessee, it was the initial year of its operations and it had no experience regarding transfer pricing regulations - A.O. was of the opinion that ignorance of law was not an excuse - argument of the assessee that he had substantially complied with the said letter of TPO since 12 out of 16 items were filed - the allegation of TPO that it had failed to comply with the notice was incorrect – Held that:- If the Revenue alleges that there has been failure of the assessee with regard to production of any of the record, it was required to point out which record it had failed to produce and whether such record was one which was prescribed under Section 92D(1) to be maintained by an assessee in respect of the international transactions entered into by it - was not a fit case for levy of penalty under Section 271G of the Act. Ld. CIT(Appeals) was justified in deleting such penalty. No interference is required
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