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2022 (8) TMI 900 - AT - Income TaxPenalty u/s 271G - physically filed revised Form No. 3CEB revised form No. 3CEB was not filed online by the assessee thereby specifying revised Domestic Transaction - What amounts to non-furnishing of the relevant documents or non-reporting of transaction of Specified Domestic Transaction? - As per DR requirement under Section 92D(3) was not fulfilled by the assessee relating to the furnishing of correct information - CIT-A deleted penalty levy - HELD THAT - It is pertinent to note that the revised Form No.3CEB dated 18.03.2016 was filed by the assessee related to claim under Section 80IA - penalty order under Section 271G has stated that the assessee has not filed revised form No.3CEB online. This amounts to admitting that the assessee has physically filed revised Form No.3ECB on 18.03.2016 which cannot be stated as non-furnishing of the relevant documents or non-reporting of transaction of Specified Domestic Transaction. Reliance of the Ld. AR upon the decision of Bumi Hiway 2014 (9) TMI 321 - DELHI HIGH COURT is very apt in the present assessee s case wherein it is held that where the Transfer Pricing Officer had asked for specific details and documents so these requirements were fully complied with by the assessee company, penalty under Section 271G could not be imposed. Besides this, the Transfer Pricing Officer vide notice dated 10.08.2017 under Section 92D(3) had asked for information related to the transactions which were submitted by the assessee vide submissions dated 17.08.2017. CIT(A) has given detailed finding and there is no need to interfere with the same. Thus, the CIT(A) has rightly allowed the appeal of the assessee. Appeal of the Revenue is dismissed.
Issues:
Penalty under Section 271G for non-filing of revised Specified Domestic Transaction in Form No. 3CEB online. Analysis: The appeal was filed by the Revenue against the order passed by the CIT(A)-12, Ahmedabad for the Assessment Year 2014-15. The Revenue raised grounds of appeal regarding the deletion of the penalty of Rs.68,11,735/- levied under Section 271G of the Income Tax Act. The assessee initially declared income under normal provisions and Section 115JB of the Act, later revising the return. The issue involved International Taxation and Specified Domestic Transaction under Section 92CA. The Assessing Officer observed that the assessee revised the income due to Specified Domestic Transaction but did not file the revised Specified Domestic Transaction in Form No. 3CEB. Consequently, penalty proceedings under Section 271G were initiated. The CIT(A) allowed the appeal of the assessee against the penalty order. The Revenue contended that the revised Form No. 3CEB was not filed online by the assessee, leading to non-reporting of revised Domestic Transaction, making the assessee liable for penalty under Section 271G. On the other hand, the assessee argued that the penalty can only be imposed if the required information is not furnished within the specified time. The assessee cited relevant case laws to support their argument. Upon hearing both parties and examining the material on record, it was noted that the revised Form No.3CEB related to a claim under Section 80IA, not the Specified Domestic Transaction. The penalty order mentioned non-filing of revised form No.3CEB online, acknowledging the physical filing of the form. The Tribunal found the assessee complied with the requirements specified by the Transfer Pricing Officer, and the information related to transactions was submitted as requested. The CIT(A) provided detailed findings supporting the assessee's position, leading to the dismissal of the Revenue's appeal. The Tribunal upheld the CIT(A)'s decision, emphasizing that penalty under Section 271G could not be imposed as the necessary details and documents were furnished within the specified time. In conclusion, the appeal of the Revenue was dismissed, and the order was pronounced in the open court on July 29, 2022.
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