TMI Blog2023 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 195(6) r.w. Rule 37BB is not mandatory. CIT(A) held that there is lack of clarification of words expressively in the provisions, and only during this assessment year and no express specification have been made for penalty for each default. The Income Tax Rules were amended w.e.f. from 16/12/215, in which 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. The amendment though came into effect from 16th December 2015, but it is a settled law that if a statute is curative or merely declaratory of the previous law, retrospective operation is generally intended. Therefore, ld CIT(A) held that the penalty provisions u/s 271-I of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , return of income was filed by assessee on 15.10.2016 declaring total income of Rs. 97,66,310/-. The assessee is engaged in the business of trading of yarn. The Assessment was completed u/s 143(3) of the Act on 16.10.2018 by accepting the returned of income filed by the assessee. However, during the assessment proceedings it was noticed that the assessee has not furnished / provided information fully related to section 195 of the Act before the Assessing Officer. Hence, penalty proceedings were initiated u/s 271-I of the Act and notice u/s 274 r.w.s 271-I of the Act was also served to the assessee along with the assessment order. The case of assessee was selected for scrutiny to verify the outward remittance made by the assessee to a non-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /03/2016 in which the requisite form 15CA was required to produce before the Assessing Officer. Therefore, Assessing Officer noted that the assessee failed to submit necessary certificate Form No.15CA before the AO in respect of 04 foreign remittances made during the year under consideration to a non-resident company in Turkey. 5. According to the new amendment of CBDT (date 15/06/2015) if any person making remittance to a non-resident, irrespective of the fact that whether it is taxable or not the person compulsorily required to file form No 15CA before the income tax authority. In view of the above facts and circumstances of the case and legal position. The Assessing Officer held that the assessee has committed a default by n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of this Tribunal in the case of ACIT vs. Vinay Diamonds (supra) wherein the Tribunal held as follows: 7. We have considered the rival submissions and perused the relevant finding given in the impugned order ld CIT(A). We note that assessee is in the business of trading, import and manufacturing of diamonds. The rough diamonds are imported and payments are made through foreign outward remittance in foreign currency. The assessing officer held that the provision of section 195(6) was amended by Finance Act, 2015 which came w.e.f. 01.06.2015 and as per the amended provision the assessee had to provide the Form 15CA to the assessing officer for each transaction. The assessee had made 80 transactions of foreign remittance out of whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Following are the five new example payment types: 1. Advance payment against imports 2. Payment towards imports-settlement of invoice 3. Imports diplomatic missions 4. Intermediary trade 5. Imports below Rs. 5,00,000/- (For use by ECD officers) 8. Therefore, assessee submitted before ld CIT(A) that 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. So, there is lack of clarification of words expressively in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 against the import of goods and does not attract the provision of withholding tax and the requirement to furnish the details u/s 195(6) r.w. Rule 37BB is not mandatory. Therefore, ld CIT(A) held that there is lack of clarification of words expressively in the provisions, and only during this assessment year and no express specification have been made for penalty for each default. The Income Tax Rules were amended w.e.f. from 16/12/215, in which 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. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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