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2018 (12) TMI 1589 - AT - Income TaxImposition of penalty u/s 271G - Assessee is mainly engaged in diamonds business focusing on the Manufacturing & Training segment of the diamond industry - Assessee failed to furnish information or documents in respect of segmental amount relating to transaction made with AEs and non-AEs for determination of arms length price of international transactions as required by TPO under Rule 10D(1) and Rule 10D(3) - CIT-A deleted the addition - Held that:- CIT(A) has deleted the penalty by observing that keeping in view nature of diamond business in which the Assessee is engaged, it has sustainably complied with the requirement of filing documents with respect to segmental amount relating to transactions with AE & non-AEs for determination of arms length price of international transaction. Accordingly the CIT(A) observed that when there is no adjustment made in the arms length price, penalty so imposed is not justified. CIT(A) has also relied on various judicial pronouncement having similar facts, wherein penalty has been deleted u/s 271G of the Act, when no adjustment in arms length price was made. Detailed findings so recorded by the CIT(A) have not been controverted by Ld. DR, accordingly we do not find any reason to interfere with the order of the Ld. CIT(A). - decided against revenue
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