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2020 (10) TMI 615 - AT - Income TaxPenalty u/s 271(1)(c) & 271AA - No independent accountant's report in respect of all international transactions between associated enterprises or specified domestic transactions - contention of the assessee is that there is no international transaction, therefore, there was no need to maintain the TP documents - HELD THAT:- Assessee mandatorily has to maintain documents of its own. Non-maintaining documents on account that there is no international transaction and merely relying on the supporting documents of Associated enterprise, cannot be termed as reasonable cause for not maintaining the documents on its own under Section 273B in respect to the international transactions as well as the specified domestic transactions as well. It is mandatory requirement to obtain an independent accountant’s report/documents in respect of specified domestic transactions with Associated Enterprises as per Section 92D of the Act and this mandate cannot be diluted by the so called reasonable cause given under Section 273B - AO was right in imposing the penalty under Section 271AA of the Income Tax Act and the CIT(A) was not right in deleting the penalty. - Decided in favour of revenue.
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