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2017 (4) TMI 1454 - DELHI HIGH COURTPenalty u/s 271(1)(c) - inaccurate particulars of income with respect to the transfer pricing (TP) adjustment - HELD THAT:- ITAT [2016 (8) TMI 1143 - ITAT DELHI] has deleted the penalty imposed by the Assessing Officer as affirmed by the Commissioner of Income Tax (Appeals) - XX, New Delhi by its order dated 12th November, 2013. Every step the assessee has been able to demonstrate that the notwithstanding the addition accepted by way of an estimate the claim that the arms length price has been computed in accordance with the provisions of section 92C of the Act stands unrebutted on record. The mere fact that addition has been partially sustained by itself in the facts and circumstances of the present case does not warrant the penal action. - Decided in favour of assessee TP adjustment - 32% of the operational cost for the purpose of as the cost plus mark-up of the international transactions entered into by the Assessee with its Associated Enterprise - HELD THAT:- This was a derived mark-up on the operating cost earned by Li & Fung (India) Private Limited with respect to its global profits. The entire proceedings, therefore, show that there was no deliberate attempt by the Assessee to conceal any income or to underpay tax. ITAT, in the circumstances, was justified in reversing the order of the CIT (Appeals), New Delhi.
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