9911796707
TMI Blog2015 (3) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 271AA, by the Assessing Officer. 3. Facts in brief:- The assessee company is wholly owned subsidiary of Kodak Polychrome Graphics B.V. Netherlands. The assessee company mainly deals in graphic art films, graphic art chemicals plates and other allied products required in the printing industries. The assessee had filed its return of income on 31st October 2007, declaring income of Rs. 5,97,32,516. The said return of income was duly accompanied with audited Balance Sheet, Profit & Loss account and audit report. Since the assessee had international transactions with its A.E., therefore, it had prepared transfer pricing report and audit report in Form no.3CEB. Based on the Form no.3CEB, the Assessing Officer made a reference to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention and levied the penalty under section 271AA. 4. Before the learned Commissioner (Appeals), the assessee furnished a very detail submissions stating that clause by clause documentation as required under rule 10D has been fulfilled by the assessee. The relevant extract of such submissions has been incorporated by the learned Commissioner (Appeals) in his order from Pages-7 to 9 of the appellate order. Besides this, the assessee also submitted that before the Transfer Pricing Officer each and every query was replied along with the proper evidence and documentation. Thus, there should not have been any reason for levying penalty under section 271AA. It was further submitted on this score that the charge of the Assessing Officer is com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on record. The penalty under section 271AA provides that if any person in respect of international transaction fails to keep and maintain the documents under sub-clause (2) of section 92D or fails to report such transaction which he is required to do so or maintains or furnish an incorrect information or document then penalty is leviable. Here in this case, it is it is an admitted fact that the assessee has filed its audit report in Form no.3CEB, highlighting the international transaction and has also done the bench marking of the arm's length price in relation to the transaction undertaken with the A.E. and how such bench marking has been done after following the most appropriate method. The assessee had submitted its transfer pricing do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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