TMI Blog2019 (2) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction or specified domestic transaction. In facts of present case, it is observed that assessee has maintained documents/information required as per section 92D of the Act, regarding international transaction, more particularly described under Rule 10 D of Income tax Rules 1962, which has been filed before the Ld.AO in Form 3CEB, vide letter dated 13/03/2014. Admittedly, AO accepted and took on record prescribed documents, that are submitted by assessee which forms part of paper book filed before us, more particularly placed at page 2- 152. Further, having regard to these documents AO, accepted international transaction entered into by assessee with its AE to be at arm’s length price, and no adjustment whatsoever has been made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O passed order under section 143(3) of the Income Tax Act, 1961 (the Act) and assessee s income was assessed at returned income filed. 2.1. Thereafter vide order dated 29/09/2014 Ld. A.O. levied penalty of ₹ 20,94,321/-under section 271AA of the Act, on the ground that, assessee failed to maintain adequate documentation in respect of international transaction entered into during year under consideration. 2.3 . On appeal before Ld.CIT (A), penalty levied was deleted. 3. Aggrieved by order of Ld.CIT (A), revenue is in appeal before us now. 3.1. Ld.Sr.DR placed reliance upon order of Ld.AO and submitted that under Rule 10 E assessee was required to furnish report regarding international transaction entered during year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, there was no basis for levying penalty under section 271 AA of the Act. 4. We have perused submissions advanced by both sides in light of records placed before us. 4.1 . Ld.CIT(A) deleted penalty by observing as under: 4.3.1. I have considered the submissions made by the appellant and also judicial citations relied upon by it. I have also considered the assessment order. Following facts have emerged: 1. That the appellant has shown international transaction during the year under consideration declaring an income of ₹ 1,36,53,34,780/-. 2. That the AO has accepted the return income in the assessment order passed u/s 143(3) of the Act. 3. That the assessee has filed details as and when asked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n t find it a fit case for levying of penalty u/s 271AA of the Act. Accordingly, penalty levied u/s 271AA is deleted. Appellant s ground of appeal is allowed. 4.2. From the above, it is observed that assessee failed to file Form 3 CEB within prescribed period, for which Ld.AO has separately imposed penalty under section 271BA. 4.3. However, it is observed that at time of assessment, Ld.AO was in possession of these documents, based upon which, assessment order has been passed by holding international transaction to be at arm s length. 5. We have perused Section 271AA of the Act, wherein penalty is leviable for failure to keep and maintain information and documents etc., in respect of international transaction or specified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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