9911796707
TMI Blog2025 (5) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... ised following grounds of appeal : "The following grounds, which are independent of and without prejudice to each other - On facts and in law, 1. Order passed without jurisdiction is null and void: The learned CIT(A) erred in passing the order under section 250 of the Act under the jurisdiction of National Faceless Appeal Centre, Delhi by ignoring CBDT Notification. He erred in not appreciating that the jurisdiction of the present appeal was with Commissioner of Income Tax (Appeals) 13, Pune as per the above notification 2. Penalty is not warranted on the adjustment of Rs 4,07,42,345/-: 2.1 The learned CIT(A) erred in not appreciating the fact that the amount of Rs 4,07,42,345/- is repatriated by the Associated Enterprises in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant for AY 2015-16, which is equivalent to Rs 26,59,958/- (2% of Rs 13,29,97,947/-), instead of the amount of voluntary transfer pricing adjustment of Rs 4,07,42,345/- in respect of earlier years The Appellant prays leave to add, alter, vary, omit, amend, substitute, or delete grounds of appeal at any time before or at the time of appeal, so as to enable the Hon'ble Income Tax Appellate Tribunal to decide this appeal in accordance with the law." 3. At the outset, Ld. Counsel for the assessee did not press Ground of appeal No.1. Accordingly, the said ground is dismissed as 'not pressed'. 4. So far as the remaining grounds are concerned, the main grievance of the assessee is that ld.CIT(A) erred in confirming the penalty of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee which leads to initiation of penalty u/s. 271AA of the Act. Thereafter, proceedings u/s. 271AA of the Act was carried out and the penalty is leviable if the assessee fails to keep and maintain any such information and document as required u/s. 92D(1/2), fails to report such transaction which is required to do so or maintains or furnishes incorrect information or document. It was claimed by the assessee that the alleged sum of reimbursement was received by the assessee from its AE company in April, 2015 on account of six debit notes issued to its AE/holding company in March, 2015 consequent to Transfer Pricing adjustment made from A.Y. 2009-10 to A.Y. 2014-15 in pursuance to Dispute Resolute Panel (DRP). It was also submitted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he DRP directions adopting the Cost Plus Margin @20% in the spirit of Safe Harbour norms. These debit notes were issued in March, 2015 and the amount was received from AE in April. 2015. It is also submitted that the said amount of Rs. 4,07,42,345/- was credited as income by the company in its profit and loss account for the year ended 31.03.2015 and since this amount represents Transfer Pricing adjustment already offered to tax in the A.Y. 2009-10 to A.Y. 2014-15, it was excluded while computing the total income for A.Y. 2014-15. On the strength of these facts, it was stated that assessee had reasonable cause not to report the said transaction in Form No.3CEB and therefore no penalty is leviable u/s. 271AA of the Act. 8. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... April, 2015. These facts clearly indicates that the amount received from AE during April, 2015 against the six debit notes was not towards any new international transaction carried out during the year but it was the reimbursement of the amount which already stood offered to tax for the income in respective assessment years. We note that penalty u/s. 271AA of the Act is levied if an assessee fails to keep and maintain any documents in respect of certain transactions and for the sake of convenience section 271AA of the Act is reproduced below : "Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions. 271AA. (1) Without prejudice to the provisions of section 270A or section 271 or secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A,] section 271FAB, section 271FB, section 271G, section 271GA, section 271GB, [section 271GC,] section 271H, section 271-I, section 271J, clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA or section 272B or sub-section (1) or sub-section (1A) of section 272BB or sub-section (1) of section 272BBB or clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure." 11. Now examining the facts of the instant case in light of the above two provisions, we not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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