2012 (10) TMI 205

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..... 3 (MDS.) OF 2010 - - - Dated:- 7-5-2012 - DR. O.K. NARAYANAN, CHALLA NAGENDRA PRASAD, JJ. Dr. Sibendu Moharana for the Appellant. S. Sridhar for the Respondent. ORDER Dr. O.K. Narayanan, Vice-President This appeal is filed by the Revenue. The relevant assessment year is 2006-07. The appeal is directed against the order of the Commissioner of Income-tax (Appeals)-V at Chennai, dated 13-9-2010 and arises out of the penalty order passed under section 271G of the Income-tax Act, 1961. 2. The assessee had entered into an international transaction during the previous year relevant to the assessment year under appeal. Therefore, the question of arm's length price (ALP) was referred to the Transfer Pricing Officer (TPO). .....

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..... ed from the assessee's holding company and as soon as it was received, the same was produced before the TPO. The Commissioner of Income-tax (Appeals) also found that inspite of all the difficulties, ultimately the TPO has not made any adjustment in the ALP. Therefore, the default alleged in the hands of the assessee as such was not crucial in the study of ALP made by the TPO. 5. The Commissioner of Income-tax (Appeals), in view of the above circumstances explained before him, found that the assessee had reasonable cause for not filing the details within the time limit. He accordingly cancelled the levy of penalty. 6. The Revenue is aggrieved and, therefore, in appeal before us. 7. We heard Dr. Sibendu Moharana, the learned Commi .....

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..... sent case is to be examined in the light of the above stated provisions of law. It is not a case where the assessee has not furnished the details at all. There was a delay in filing the details. The assessee has explained the reasons why it could not furnish the details within the time limit specified by the TPO. Certain important document had to be obtained from its holding company, as the same was not readily available with it. Further, as the transfer pricing law is a new subject, the employees of the assessee were not so familiar with it so as to complete the work in a fast pace to keep up the time limit. In these circumstances, we feel that the assessee had genuine difficulties in presenting the details strictly within the time specifi .....

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