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2011 (11) TMI 82 - AT - Income TaxPenalty u/s. 271AA for non-compliance of provision of sec. 92D - Rule 10D - Maintenance, keeping of information and document by persons entering into an international transaction - Held that:- As rightly held by the CIT(A), the requirement of law is that the Assessee has to "keep and maintain" information and documents in respect of international transaction 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. - there is no justification for imposition of penalty. - Decided in favor of assessee.
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