TMI Blog2016 (12) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction. As such the ALP determined by assessee is not being disturbed”. Further, we have seen that assessee filed Form 3CEB, Royalty Agreements entered into with AE and (copy of which are available at page no.19 to 53 of PB). These documents were furnished by assessee along with assessee’s letter dated 16.11.2011 which was duly acknowledged. The report is duly certified by C.A. that all the documents in respect of International Transaction have been maintained by assessee. Thus as assessee made the sufficient compliance for maintaining the record as required u/s 92D r.w. Rule 10D. We also find from the order of ld. TPO that there was no recommendation for initiating any penalty proceeding u/s 271AA of the Act nor any finding that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed income, the AO initiated penalty proceedings u/s 271AA. The AO worked out the penalty @ 2% of the international transaction of ₹ 24,45,23,345/- and levied the penalty of ₹ 48,70,467/-. When the order of penalty was served on the assessee, the assessee filed appeal before CIT(A) where the order of penalty was sustained, thus this second appeal is filed before us. 3. We have heard the ld AR for the assessee and the ld Departmental Representative (DR) for the Revenue and perused the material available on record. The ld AR for the assessee would argue that the assessee was not served with the notice of penalty. The assessee s address of Bhulabahai Desai Road was available on the record as the all correspondence from the office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnish the information as require under Rule 10D the AO levied the penalty as provided in the statue. 4. We have considered the rival contentions of both the parties and perused the order of the authorities below. There is no dispute that Ld TPO has not made any adjustment in respect of the international transaction of assessee with its AE .this fact itself shows that the Ld PTO and no further addition was proposed. We have seen the order of TPO u/s 92CA(3) dated 28/10/2011 which does not mention that there was any failure on the part of assessee to maintain documents as required under Rule 10D. Though, the order contain the reference that assessee failed to submit the document and Transfer Pricing Report. In part-5 of its report ld. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on entered into with AE. Rule 10D(4) of the Rules envisages that the information and documents specified under sub-rules (1) and (2) should, as far as possible, be contemporaneous and should exist latest by the specified date referred to in clause (iv) of section 92F, which is due date for filing return of income u/s.139(1) of the Act. The Assessment order and the order imposing penalty u/s.271AA of the Act, does not specify what was the failure on the part of the Assessee under Sec.92D read with Rule 10D of the Rules. The Assessee has in the course of assessment proceedings furnished all details required by the AO and the international transaction with the AE has been accepted to be one confirming to the Arm's Length Price. No addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in Rule 10D, which has been formulated in terms of Section 92D(1) of the Act. Looking from any quarter and angle, the appeal of the Revenue is misconceived, totally lacking in merits and is, therefore, dismissed. 5. In view of the above legal preposition, we are of the opinion that assessee made the sufficient compliance for maintaining the record as required u/s 92D r.w. Rule 10D. We also find from the order of ld. TPO that there was no recommendation for initiating any penalty proceeding u/s 271AA of the Act nor any finding that assessee failed to maintain the record prescribed under Rule 8D. With these observations, the appeal of the assessee is allowed. No order as to cost. 6. In the result, appeal filed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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