The Tax Publishers2022 TaxPub(DT) 6598 (Del-Trib)

INCOME TAX ACT, 1961

Section 271AA

Where assessee maintained requisite documentation in respect of its reported international transaction and also furnished details of various documentations maintained by it, which stood accepted by TPO also, AO was not justified in levying penalty under section 271AA.

Penalty under section 271AA - Leviability - Assessee maintained requisite documentation in respect of its reported international transaction and also furnished details of various documentations maintained by it -

Assessee entered into international transactions with its AE. AO levied penalty under section 271AA on the ground that assessee-company not kept and maintained the information and documents as required by sub-section (1) or sub-section (2) of section 92D.Held: AO had not specified the documents/information which, in his view, were required to be kept and maintained under section 92D(1) and 92D(2) read with rule 10D of the Rules but were not kept and maintained by the assessee. TPO while framing order under section 92CA3 admitted that TP documentation containing functional and economic analysis prescribed under rule 10A were submitted and placed on record. Thus, assessee maintained requisite documentation in respect of its reported international transaction and also furnished details of various documentations maintained by it. Accordingly, no penalty could be levied under section 271AA.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



IN THE ITAT, DELHI BENCH

SAKTIJIT DEY, J.M. & N.K. BILLAIYA, A.M.

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