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2019 (8) TMI 796 - AT - Income TaxPenalty u/s 271G - failure to furnish documentation as required under the Rule 10D(1) and Section 92D(3) - CIT(A) taken view that when the rough/polished diamonds were traded on lot wise basis, it was difficult to identify and say whether a polished diamond came out of a particular lot of rough diamonds or the other and/or out of the polished diamonds purchased locally or imported by the assessee - HELD THAT:- We find that the assessee to the extent possible in the backdrop of the nature of its business had furnished several details on number of occasions with the TPO. We thus are of the considered view that the assessee had substantially complied with the directions of the TPO and had placed on his record the requisite information to the extent the same was practically possible in light of the very nature of its trade. We though are not oblivious of the fact that the assessee may not have effected absolute compliance to the directions of the TPO and furnished all the requisite details as were called for by him on account of practical difficulties as had been deliberated by us at length hereinabove, but in the backdrop of our aforesaid observations, we are of the considered view that the failure to the said extent on the part of the assessee to comply with the directions of the TPO can safely be held to be backed by a reasonable cause which would bring its case within the realm of Sec. 273B. We thus in the backdrop of our aforesaid observations find ourselves to be in agreement with the view taken by the CIT(A), and finding no reason to dislodge his well reasoned order, therefore, uphold the same. Accordingly, we uphold the deletion of the penalty by the CIT(A) - appeal of the revenue is dismissed
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