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TMI Blog2014 (1) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... finding that for the failure of the assessee penalty u/s 271G should not have been levied - while initiating penalty proceedings u/s 271G, AO satisfied himself to the effect that the assessee had failed to maintain documents and information as required u/s 92D(1) and it had failed to get its accounts audited, as required u/s 92E - For the defaults , AO should have initiated penalty proceedings u/s 271AA/271BA – Thus, the penalty levied u/s 271G of the Act set aside – Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... 10D of the I. T Rules, that value of international transaction was exceeding Rs.1 crore, that as per rule 10D r.w.s. 92D & 271AA,that assessee had to maintain and keep prescribed information and documents, that assessee has failed to do so. He levied a penalty of Rs. 11.10 lakhs u/s.271G r.w.s.271AA of the Act. 2.1 Against the order of the AO assessee preferred an appeal before the First Appeal Authority (FAA).After considering the submissions of the assessee and the penalty order he held that during the assessment proceedings AO had not asked the assessee to furnish information which it was required to maintain under Rule 10D(1),that no notice u/s. 92D(3) was issued by him, that AO had queries with respect to transfer pricing and same wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or which this information is to be maintained, and sub-section (3) specifies that, as and when required by the AO or the FAA, the information prescribed has to be produced within 30 days of the requisition. Section 92E states that, every person who enters into an international transaction should file a report from a Chartered Accountant in Form 3CEB, as prescribed by Rule 10E. Failure to maintain the information prescribed by sub-section (1) & (2) would entail penalty u/s. 271AA. Failure to furnish the information on demand by the AO entails penalty u/s. 271G. Failure to comply with the provisions of section 92E results in penalty to be imposed u/s. 271BA. Clearly, all the three penalties operate in very different fields. One cannot substit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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