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2016 (12) TMI 935 - AT - Income TaxPenalty u/s 271(1)(c) - addition of TP adjustment - whether the acceptance of enhanced mark-up as decided by the ITAT leading to the addition can it be claimed in view of the deeming provision of Explanation 7 of section 271(1)(c), that the computation of price charged or paid by the assessee in the international transaction as defined in section 92B was computed in accordance with the provisions contained in section 92C in good faith and with due diligence? Held that:- In the absence of any argument on facts demonstrating that the computation in the TP study placed on record is in violation of the requirements of Section 92C of the Act and the said exercise was neither done in good faith nor with due diligence, the departmental action fails Nothing has been placed on record by the Revenue to show that the choice so exercised by the tax payer to accept the enhanced mark-up in the peculiar facts and circumstances of the case can constitute acts of suppressio veri or suppressio falsi lacking good faith and in violation of due diligence requirement. We find that all primary facts required to be disclosed have been found to be correctly made available in regard to the international transaction and the international transaction disclosed has been computed as per the provisions of section 92C in good faith and with due diligence. In view of the above detailed reasons on facts and law the impugned order is set aside and the penalty order is quashed. - Decided in favour of assessee
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