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2021 (5) TMI 100 - AT - Income TaxPenalty u/s 271G - under TNMM adopted by the assessee, the profit of the international transaction has to be furnished, whereas the assessee has only furnished the entity level margins which consists of overall profits on AE and significant non non-AE transactions - reasonable cause for non-compliance of Section 92D read with Rule 10D(1) without specifying the cause of such non-compliance or demonstrating how the same was reasonable - CIT(A) deleted the penalty levied u/s. 271G by holding that the assessee had made substantial compliance - HELD THAT:- Upon careful consideration, we find that learned CIT(A) has failed to discharge the duty cast upon him. He is passing a quasi judicial order. It was incumbent upon him to pass a proper speaking order while deleting a huge penalty of ₹ 6.63 crores levied by the Assessing Officer which is a detailed order and also relies upon SHATRUNJAY DIAMONDS. [2003 (1) TMI 62 - BOMBAY HIGH COURT] . It is settled law that rules of natural justice are applicable to even administrative order and they are applicable to both the parties in a dispute. On this plank itself the order of learned CIT(A) is not sustainable. Moreover the issue of case laws will arise after learned CIT(A) duly deals with facts and issues, which he has failed to do. In this connection we refer to the decision of Hon'ble Supreme Court in the case of Kapurchand Shrimal [1981 (8) TMI 2 - SUPREME COURT] wherein held that it is the duty of the appellate authority to correct the error in the order of the authorities below and remit the matter with or without direction unless probable by law. Hence in the interest of justice, we vacate the order of learned CIT(A) and set aside the issue to the learned CIT(A). CIT(A) shall pass a proper and speaking order after giving the assessee proper opportunity of being heard. Assessee is at liberty to canvas the issue at it deems fit - Appeal by the Revenue stand allowed for statistical purpose.
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