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2019 (2) TMI 900 - AT - Income TaxPenalty u/s 271AA - assessee failed to maintain adequate documentation in respect of international transaction entered into during year under consideration - Held that:- Assessee failed to file Form 3 CEB within prescribed period, for which Ld.AO has separately imposed penalty under section 271BA. As observed that at time of assessment, AO was in possession of these documents, based upon which, assessment order has been passed by holding international transaction to be at arm’s length. As perused Section 271AA of the Act, wherein penalty is leviable for failure to keep and maintain information and documents etc., in respect of international transaction or specified domestic transaction. In facts of present case, it is observed that assessee has maintained documents/information required as per section 92D of the Act, regarding international transaction, more particularly described under Rule 10 D of Income tax Rules 1962, which has been filed before the Ld.AO in Form 3CEB, vide letter dated 13/03/2014. Admittedly, AO accepted and took on record prescribed documents, that are submitted by assessee which forms part of paper book filed before us, more particularly placed at page 2- 152. Further, having regard to these documents AO, accepted international transaction entered into by assessee with its AE to be at arm’s length price, and no adjustment whatsoever has been made. Ld.AO has not expressed any difficulty in examining correctness of price adopted by assessee in respect of international transaction with AE. Thus in our considered opinion there is no justification for imposition of penalty under section 271AA - Decided against revenue.
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