INCOME TAX ACT, 1961

Section 271G

Penalty under section 271G - Assessee had not maintained information/documents required under section 92D(1) - -

AO imposed penalty under section 271G on the ground that assessee had not maintained information/documents required under section 92D(1) read with rule 10D for enabling him to determine the ALP. Held: Assessee had maintained a number of information/documents as required under the statutory provisions and furnished segmental profitability at gross level. No specific discrepancy has been pointed out by the TPO with regard to the information furnished by the assessee including segmental profitability. Further, the assessee had also explained why it was not possible to furnish certain information sought by the TPO qua applicability of internal CUP method. In this regard, detailed written submission was filed by assessee before TPO which was properly evaluated by CIT(A) and difficulty in maintaining the information sought by TPO. Therefore, penalty under section 271G was not justified.

REFERRED : HC) Dy. CIT v. Blue Star Diamonds Pvt. Ltd. [ITA No. 6553/Mum./ 2017, dated 13-6-2019] DCIT v. Leo Schachter Diamonds India Pvt. Ltd. [ITA No. 5931/Mum./2017, dated 28-2-2019] : 2019 TaxPub(DT) 4799 (Mum-Trib) DCIT v. Laxmi Diamond Pvt. Ltd. [ITA No. 2643/Mum./ 2017, dated 27-12-2018] Dy. CIT v. Interjewel Pvt. Ltd. [ITA No. 5628/Mum./2016, etc., dated 01-11-2018] Dy. CIT v. Interjewel Pvt. Ltd. [ITA No. 5626, 5627, 5628, 5304/Mum/2016 (Assessment Year 2011-12), dt. 1-11-2018]

FAVOUR : In assessee's favour

A.Y. :

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