2021 (11) TMI 349

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..... ted in 2002 and is a joint venture between Taiyo Kagaku Co. Ltd., Lucid Colloids Limited and CBC Co. Ltd., Japan. The assessee is the manufacturer of a water soluble dietary fibre. During the year under consideration, the assessee had disclosed transaction entered with CBC Co. Ltd. in the nature of purchase of raw materials and packing materials amounting to Rs. 4,15,31,447/- in clause 22 of the Form 3CEB as specified domestic transaction. It was observed from Clause 21 of the Form 3CEB by the TPO that CBC Co. Ltd. was located at Japan and therefore, the said transaction should have been disclosed as international transaction as against specified domestic transaction. The assessee was given an opportunity to explain as to why the said trans .....

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..... the documentation required as per statutory requirements in this regard was inescapable. It was further held that in absence of such documentation, it was not possible to examine whether the transaction in question was at Arm's length price or not. In addition, the assessee has not been able to advance any written or verbal submissions on the merits of the issue. Thereafter, the Ld. DRP dismissed the objections filed by the assessee being not supported by any supporting material or arguments. Further, the Assessing Officer/TPO was directed to initiate penalty proceedings u/s. 271AA and 271G of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for failure to keep/maintain information and documents in respect of an .....

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..... thorities in absence of proper documentation, therefore, as prayed by the assessee, the matter can go back to the TPO for re-adjudication. 6. We have heard the submissions of the parties herein and considered the facts and circumstances in this case. It is an agreed fact that the assessee had entered into a transaction of purchase of raw materials amounting to Rs. 4,15,31,447/- and reflected it in Clause 22 of Form 3CEB. Now, as the facts on record demonstrate that neither before the TPO nor before the Ld. DRP, the assessee had filed necessary details/documentary evidences in support of his case. The Assessing Officer had however derived the Arm's length price of the transaction to be as Nil and from the order of the Assessing Officer, .....

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