TMI Blog2020 (10) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... as reasonable cause for not maintaining the documents on its own under Section 273B in respect to the international transactions as well as the specified domestic transactions as well. It is mandatory requirement to obtain an independent accountant s report/documents in respect of specified domestic transactions with Associated Enterprises as per Section 92D of the Act and this mandate cannot be diluted by the so called reasonable cause given under Section 273B - AO was right in imposing the penalty under Section 271AA of the Income Tax Act and the CIT(A) was not right in deleting the penalty. - Decided in favour of revenue. - ITA No. 3529/DEL/2015, ITA No. 3530/DEL/2015 - - - Dated:- 13-10-2020 - Shri R. K. Panda, Accountant Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the assessee provides IT enabled call centre/back office support services to the assessee. For the Assessment Year 2006-07, the assessee filed its return of income as follows:- Details of Income Amount (RS) Rate at which offered to tax Interest on External Commercial Borrowings 1,92,29,077 15% Fees for Technical Services 20,777,272 15% Total 4,00,06,350 The interest and FTS income was earned by the assessee from CIS and associated enterprises of the assessee in India. The Assessing Officer vide Assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect order was passed by the Assessing Officer u/s 254 of the Act dated 13/8/2013 wherein the income has been assessed as under:- Description Amount (In INR) (i) Returned Income (Taxable @15%) 40,006,350 ADD: (ii) Profits attributable to PE (Taxable as business profits @ 40% plus applicable surcharge and cess) 5,715,189 Taxable Income 45,721,539 4. The assessee preferred appeal before the Hon ble Delhi High Court which is admitted. In the meantime, the Assessing Officer issued show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention of the assessee is that there is no international transaction, therefore, there was no need to maintain the TP documents. But as per Section 92D of the Income Tax Act, every person has to maintain its own document. Section 92D of the Act reads as under: 92D. (1) Every person who has entered into an international transaction [or specified domestic transaction] shall keep and maintain such information and document in respect thereof, as may be prescribed. It is mandatory for all taxpayers, without exception, to obtain an independent accountant's report in respect of all international transactions between associated enterprises or specified domestic transactions. The report has to be furnished by the due date of the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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