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TMI Blog2023 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... fter referred to as the 'Act'), dated 26.04.2019. 2. The grounds of appeal raised by the assessee are as follows: "1) The Ld. CIT(A) NFAC has erred by confirming order of Ld. ACIT Circle 1(2), Surat, levying penalty of Rs. 4,00,000/- u/s 271I of the Income Tax Act, 1961. 2) The appellant prays for granting such other relief as may be deemed just and proper by your Honour considering the factual and legal aspects of the case of the appellant. 3) The Appellant craves leave to add, amend, alter, modify, substitute, delete, change, vary, and withdraw all or any of the Ground or Grounds of Appeal." 3. Brief facts qua the issue are that in this case, return of income was filed by assessee on 15.10.2016 declaring total income of Rs. 97,66, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crutiny proceedings. As per section 195(6) of the Act, any person responsible for paying any sum to a non- resident or to a foreign company, whether it is chargeable or not to tax, the assessee has to furnish the information related to this transaction in Form No-15CA before the income tax department . In this case, the assessee failed to do so and therefore, penalty was levied u/s 271-I of the Act for each default. The amount of penalty is Rs. 1,00,000/- for each default. 4. On verification of the entire details submitted by the assessee it was noticed that the following payments made by the assessee to a non-resident company from 01/04/2015 to 31/03/2016 in which the requisite form 15CA was required to produce before the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is squarely covered by the aforesaid judgment of the Tribunal. 9. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 10. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that the assessees issue is squarely covered by the judgment of this Tribunal in the case of ACIT vs. Vinay Diamonds (supra) wherein the Tribunal held as follows: "7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBDT to capture information in respect of payment made to non-residents, whether chargeable to tax or not. On another side, Rule 37BB of the Income-tax Rules has been amended vide Notification No.G.S.R.978(E) dated 16th December, 2015, to strike a balance between reducing the burden of compliance and collection of information under section 195 of the Act. The significant changes under the amended Rules are as follows: * No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not require RBI approval under its Liberalized Remittance Scheme (LRS) * Further the list of payments of specified nature mentioned in Rule 37BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quirement to furnish the details u/s 195(6) r.wRule 37BB is not mandatory. The Form 15CA/15CB are required to be submitted only for those payments which are chargeable to tax in India and do not require RBI approval under its Liberalized Remittance Scheme (LRS). 10. The ld CIT(A) also noted that the list of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33, including 'payments for imports'. Hence, apparently there was conflict between section 195 and rule 37BB regarding the compliance of Form 15CA, which was later on amended by the government by Notification No. G.S.R. 978(E) dated 16th December, 2015. Since, the remittances which were made, were ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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