TMI Blog2012 (9) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the assessee is a company engaged in the business of manufacturing/sale of dry cells batteries having associated enterprises in Japan and Singapore. In the assessment year 2005-06, it filed its return of income on 31.10.2005 coupled with Form 3CEB explaining particulars of international transactions of the assessee. The Department made reference under section 92CA of the Act to the Transfer Pricing Officer (in short TPO), Chennai so as to determine the arms length price with regard to assessee s international transactions stated in Form No. 3CEB, who passed the order on 20.10.2008, holding therein that the assessee s case did not warrant any adjustment. However, it was observed that the case was covered by section 271G of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Royalty is subject to prior approval and control by a separate Government Department. Royalty has been in existence since the time of inception of the company and copies of agreements were being filed with the Department whenever required in the course of assessments. 4.13 Further I find that payments that in respect of international transactions can be classified into four types as pointed out by the appellant's representative. As already observed the company has some constraints in entering into international transactions relating to purchase of raw-materials, equipments and finished goods furnished in Form 3CEB. International transactions, when viewed from this angle, one cannot say that the details furnished by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter left services in 2006. Hence, I am of the view that the appellant has reasonable cause for not furnishing details in time as per Section 273 B of the Income Tax Act, 1961. Further more, filing of late details will no way lead to revenue loss. Hence, the Assessing Officer is directed to delete the penalty of Rs. .35,77,200/- levied u/s 271G relating to the assessment year 2005-06. I.T.A. No. 1138/Mds/2010 4. Similarly, in I.T.A. No. 1138/Mds/2010 for the same assessment year i.e. 2005-06, the relevant facts of the case are that after agreeing to the arm s length price stated by assessee (supra), the TPO observed that there was failure on assessee s part in maintaining information and documents as required under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to import of raw- materials. Thus there is considerable constraint faced by the appellant company in the international transactions. In this background maintenance of records and information will have to be considered. Information relating to Royalty had been furnished. Similarly details of import of raw-materials and machinery have been filed in time. I find from the report in Form 3CEB and annexure that it confirms the maintenance of record and information as per the Act. 5.2 The appellant submits that no detriment has been caused to the revenue as even the TPO has held that no adjustment was found necessary to the value of international transactions as disclosed by the appellant company. The value of international transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) i.e. under section 271G and 271AA of the Act . 7. Before us, the Revenue has reiterated various pleas raised in the grounds of both the appeals and prayed for restoring the order of the Assessing Officer. 8. On behalf of the assessee, the AR has strongly supported CIT(A) s order in both cases and also cited order of the ITAT Chennai Bench pertaining to the assessment year 2006-07 in I.T.A. Nos. 1180 and 1181/Mds/2011 dated 09.03.2012 passed in assessee s own case involving the very same issues. In the light thereof, the AR of the assessee has prayed for confirmation of the order of the Commissioner of Income Tax (Appeals). 9. We have duly considered the arguments raised by both the parties at length and also perused relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be false. The assessee admittedly is a corporate entity. The assessee can function only through its employees. If an employee leaves the services of the assessee company getting another employee to take over the job and get acclimatized and familiar to the functions originally done by the earlier employee would take time. This would be a reasonable cause. It is noticed that the ld. CIT(A) has also accepted this as reasonable cause. The claim of the assessee has also not been found to be false. In these circumstances, we are of the view that the ld. CIT(A) was right in deleting both the penalties u/s 271AA and 271G of the Act. Our view is also supported by the decision of the co-ordinate Bench of the Tribunal in the case of SSLTTK Ltd refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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