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2022 (6) TMI 666 - ITAT MUMBAIPenalty u/s 271G - non-maintenance of details in terms of section 92D(3) of IT Act r.w. Rule 10D of Income Tax Rules, 1962 - CIT-A deleted the penalty levy - whether in case of the diamond manufacturer, can any penalty be levied under section 271G of the Act for non-maintenance of segment profitability between AEs and non-AEs transactions? - HELD THAT:- We find that coordinate Bench of the Tribunal in the case of Navin Chandra exports Private Limited [2017 (11) TMI 1307 - ITAT MUMBAI] and other appeals has after a detailed discussion, held that there was reasonable cause for non-maintaining the said details. Also confirmed by HC [2018 (7) TMI 2099 - GUJARAT HIGH COURT] Since identical issue of non-maintenance of segment profitability for AEs and non-AEs transactions and consequent levy of penalty under section 271G of the Act is involved in the instant case before us, respectfully following the finding of the coordinate Bench of the Tribunal and Hon’ble Gujarat High Court, we hold that in the instant case there was reasonable cause for non-maintaining the details, which were required in terms of Rule 10D of the Rules and accordingly we do not find any error in the order of Ld. CIT(A) and uphold the order of the Ld. CIT(A) on the issue-in-dispute. The grounds raised by the Revenue are accordingly dismissed.
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