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TMI Blog2021 (11) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... the Arm's length price of the transaction related to purchase of raw materials. DR has not disputed that the Ld. DRP considered only one submission of the assessee and other one was ignored though it was on record, the assessee had filed both the submissions through e-mails. Even in a case of best judgment assessment u/s. 144 of the Act, in a case where the assessee does not appear or does not provide proper evidences before the Assessing Officer, the Assessing Officer provides reasons and completes the assessment u/s. 144 of the Act. In this case, while arriving at Arm's length price as Nil, the Assessing Officer has not given any specific findings. Furthermore, the Ld. DRP has come out with the same findings upholding the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ater soluble dietary fibre. During the year under consideration, the assessee had disclosed transaction entered with CBC Co. Ltd. in the nature of purchase of raw materials and packing materials amounting to ₹ 4,15,31,447/- in clause 22 of the Form 3CEB as specified domestic transaction. It was observed from Clause 21 of the Form 3CEB by the TPO that CBC Co. Ltd. was located at Japan and therefore, the said transaction should have been disclosed as international transaction as against specified domestic transaction. The assessee was given an opportunity to explain as to why the said transaction was disclosed as specified domestic transaction and the assessee was also asked to furnish the documentation required to be maintained mandato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation, it was not possible to examine whether the transaction in question was at Arm's length price or not. In addition, the assessee has not been able to advance any written or verbal submissions on the merits of the issue. Thereafter, the Ld. DRP dismissed the objections filed by the assessee being not supported by any supporting material or arguments. Further, the Assessing Officer/TPO was directed to initiate penalty proceedings u/s. 271AA and 271G of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for failure to keep/maintain information and documents in respect of an international transaction and failure to furnish information/document within the prescribed time limit as specified under provisions of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. We have heard the submissions of the parties herein and considered the facts and circumstances in this case. It is an agreed fact that the assessee had entered into a transaction of purchase of raw materials amounting to ₹ 4,15,31,447/- and reflected it in Clause 22 of Form 3CEB. Now, as the facts on record demonstrate that neither before the TPO nor before the Ld. DRP, the assessee had filed necessary details/documentary evidences in support of his case. The Assessing Officer had however derived the Arm's length price of the transaction to be as Nil and from the order of the Assessing Officer, we are unable to find any exercise in the form of enquiry or examination of facts on record by the Assessing Officer before arrivi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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