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2021 (6) TMI 447 - AT - Income TaxPenalty levied u/s. 271G - assessee ignoring the provisions of Section 92D of the Act as well as Rule 10D of the Income Tax Rules - As assessee had entered into international transactions and in respect thereof, he failed to furnish certain documents specified u/s. 92D of the Act r.w.r. 10D - HELD THAT:- When we peruse the notice for penalty proceedings, there also, there is no mention of any specific documents that are required to be filed by the assessee before the Assessing Office - Taking the guidance from M/S LEROY SOMER & CONTROLS (INDIA) PVT. LTD. [2013 (9) TMI 761 - DELHI HIGH COURT] without naming those documents there cannot be any imposition of penalty u/s. 271G of the Act. In our opinion, the principles of natural justice demands in respect of the right of defense for the assessee whatever proceedings are to be done by any Quasi-Judicial Authority, the first step is the issuance of notice to the assessee and in that said notice all the relevant details should be there so that the assessee gets an opportunity to prepare his defense and unfortunately in this case, it was not done. For this reason also penalty u/s. 271G of the Act is not imposable. Section 273B of the Act provides for reasonable cause and if that is justified, penalty/s. 271G of the Act may not be imposed and when this opportunity is given to the assessee by the statutes itself and the assessee has explained the reasonable causes which was accepted by the Ld. CIT(Appeal) and after perusing such reasons, we are in conformity with the findings of the Ld. CIT(Appeals). DR could not bring out any evidences or place on record any material suggesting no reasonable cause in respect of the assessee. In view thereof, we don't find any reason to interfere with the findings of the Ld. CIT(Appeal) and the same is upheld. The relief provided to the assessee is hereby sustained. Appeal of the Revenue is dismissed.
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