9911796707
TMI Blog2012 (7) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... ived even till the date of order of CIT(A). Withdrawal the ground relating to management fee and I.T. implementation fees for expeditious disposal consequent to Hon'ble High Court direction to the CIT(A) to dispose off the appeals for assessment years 2004-05 and 2005-06 within a period of 4 months can not be considered as acceptance of addition by the assessee - Though the appeal has been decided without remand report the contentions raised in the submissions leading to remand of the issue is required to be examined objectively to make proper assessment of case of penalty - no reasons have been given as to how the assessee had not proved to satisfaction that international transactions had been computed in accordance with the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. The AO however did not accept the contentions raised. It was observed by him that as per Explanation-7 to section 271(1)(c), any amount added or disallowed under section 92CA(2) shall be deemed to represent income in respect of which particulars have been concealed or inaccurate particulars have been filed unless assessee proves that price charged for such transfer was in accordance to provisions contained in section 92C and in the manner prescribed under that section. The AO further observed that, in this case, assessee neither during the course of assessment proceedings nor during the course of appellate proceedings proved that the international transaction was computed in accordance with the provisions contained in section 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal. 3. Before us, the ld. AR reiterated the submissions made before lower authorities that the assessee had made full disclosure and there was no concealment of income or any furnishing of inaccurate particulars of income. It was also submitted that mere withdrawing the ground of appeal before CIT(A) should not be considered as acceptance by the assessee. It was pointed out that the assessee had withdrawn the ground in peculiar circumstances of the case. The assessee had file appeal on 23.1.2007 which was pending for considerable length of time. There were huge demands outstanding. In the meantime, assessment for assessment year 2005-06 had also been completed which had resulted into further demand and department was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had computed international transactions in accordance with the provisions contained in section 92C, detailed working of which had been given which had not been considered while levying penalty. The claim of the assessee in relation to international transactions was bonafide and therefore, no penalty should be levied. Ld. DR strongly supported the orders of authorities below and placed reliance in the findings given in the respective orders. 4. We have perused the records and considered the rival contentions carefully. The dispute is regarding levy of penalty under section 271(1)(c) in relation to addition under section 92CA(3) in relation to international transactions. The assessee had paid huge amount on account of professional f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfied that the matter requires fresh examination and report by the AO. 4.1 A perusal of the remand report placed in the paper book shows that the CIT(A) himself in the said letter observed that it was not clear as to whether the amount of Rs. 65,15,040/- was representative of ALP of the services was examined by TPO on merit. Remand report was not received even till the date of order of CIT(A) i.e. dated 10.1.2010. This was despite the fact that the Hon'ble High Court vide order dated 12.2.2009 had directed the CIT(A) to dispose off the appeals for assessment years 2004-05 and 2005-06 within a period of 4 months. Under these circumstances claim of the assessee that it had to withdraw the ground relating to management fee and I.T. impl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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