TMI Blog2011 (12) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... were not really necessary and further the Assessee cause for not filing the requisite particulars within the time permitted. Sec 273B provides that no penalty can be levied u/s 271G if there was a reasonable cause for the failure. Penalty levied is deleted - Decided in favor of assessee. - IT APPEAL NO. 675 (Hyd.) OF 2009 - - - Dated:- 27-12-2011 - CHANDRA POOJARI, Smt. ASHA VIJAYARAGHAVAN, JJ. C.N. Prasad for the Appellant. B.V. Prasad Reddy for the Respondent. ORDER Smt. Asha Vijayaraghavan, Judicial Member This appeal preferred by the assessee is directed against the order passed by the CIT(A) -IV, Hyderabad dated 27.2.2009 and pertains to the assessment year 2005-06, confirming the action of the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer was not submitted. The Assessing Officer felt that the issue under consideration was not the concealment of income but was the assessee's failure to respond to the notice u/s 92D and to provide the requisite information. Despite having stated in the audit report that it had followed CUP method, the assessee had failed to provide information in this regard without any reasonable cause. Accordingly the Assessing Officer concluded that this was a fit case for the levy of penalty u/s 271G. Accordingly, penalty @ 2% of international transactions of Rs. 3,86,98,764/- for one failure only being Rs. 7,73,975/- was levied. 4. During the course of appellate proceedings the representative of the assessee submitted that during the course of proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the points 2 and 4 in the letter dated 19.11.2007 in the course of assessment proceedings. 6. On appeal, the CIT(A) held that a reading of sec. 92D it can be seen that the said section has been brought on to the statute with a purpose to ensure maintenance, keeping of information and documents by persons entering to an international transaction. Such information and documents are to be maintained by such a person irrespective of the fact whether any period in this regard is prescribed by the Board or not, as mentioned in sub section (2). The Assessing Officer and the CIT(A) have been empowered to require any person who has entered into an international transaction, to furnish such information or document within the period of 30 days fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed only on 27.6.2008 and not within 30 days from the date of receipt of notice u/s 271G which was sent on 19.11.2007. It is also clear that the said period of 30 days, which could have been further extended by another 30 days by the Assessing Officer, was not so extended and therefore, there was indeed non compliance in terms of sec 92D(3) r.w.s. 271G. During the course of appellate proceedings also the assessee has not been able to justify any such delay or the reasons for non compliance. It is therefore, clear that despite having entered into international transactions and having taken the benefits of the provisions of sec. 10A, the assessee willfully contravened the requirement of sec 92D(3) without any reasonable cause. I therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: "The price charged for services rendered or for development of product depends upon the open market price. Out organization is also charging our service rates at an average of US $25 per hour which includes junior, mid level, senior, skilled programmers and Quality Assurance testers for all their work or services in development of software product and others support services for these products. Generally the companies in USA who pay an average hourly rate ranges from US $25 to US $50 based on the skill level and Supply and demand. The range of hourly rate varies from company to company and from service to service. In general, mega companies like Infosys, Wipro, TCS and Satyam are charging high rate per hour for their services i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies will not be in possession of the assessee company and therefore beyond its control. Hence the Assessee submitted that non furnishing of certain information is neither wilful nor wanton but for the reasons given above and hence there is reasonable cause for not furnishing certain information. 13. The Learned Counsel for the assessee Shri C.N. Prasad relied on Cargill India P. Ltd. v. Dy. CIT [2008] 110 ITD 616 (Del.). 14. The Learned Departmental Representative Shri B.V. Prasad Reddy relied on the order of the Assessing Officer and CIT(A). 15. We have heard both the parties and perused the materials available on record. We find that Rule 10D provides for documents to be maintained by assessees in case of international transactions. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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