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TMI Blog2022 (5) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... td [ 2021 (2) TMI 1132 - ITAT MUMBAI] has decided this issue with identical facts relating to furnishing of segmental data of Profit Loss Account of AE and non AE segment has deleted the penalty levied under section 271G. - Decided against revenue. - ITA No. 5454/MUM/2017 - - - Dated:- 25-5-2022 - Shri Prashant Maharshi (Accountant Member) And Kavitha Rajagopal (Judicial Member) For the Assessee : None For the Department : Shri Sunil Kumar Jha (CIT) ORDER PER KAVITHA RAJAGOPAL (JM): This appeal has been filed by the Revenue against the order passed by the Ld.CIT(A)-57, Mumbai dated 31/05/2017 deleting the penalty levied by the Assessing Officer under section 271G of the I.T. Act for assessment year 2012-13. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The Id. CIT(A) erred in deleting the penalty for the reason that no adjustment was made to the ALP, failing to note that by not producing the material documents necessary to determined the ALP under any of the prescribed methods u/s 92C(1), the assessee effectively prevented the TPO to make any determination as recorded by the TPO in Para 8 of the order u/.92CA(3). 3. The brief facts are that the assessee is engaged in the business of purchasing rough diamonds within and outside India, cutting / polishing the same into finished goods and selling the polished diamonds to customers including foreign entities. The assessment order under section 143(3) read with section 92CA(3) of the I.T. Act dated 21/01/2016 was passed. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal before the Ld.CIT(A). The Ld.CIT(A) had stated that the TPO alleged that the Assessee has inappropriately applied the TNMM method and that by not furnishing of details the Assessee has not provided the basis for comparing the transactions of AE with another AE and / or non AE, failing to provide any alternative method for benchmarking the international transactions resulting in the TPO accepting the arms length price without examining and determining the same. The Ld.CIT(A) has further contended that all details including segment-wise PLI was furnished by the Assessee. The Ld CIT(A) held that the Assessee had made substantial compliance of providing all necessary information sought for by the TPO for determining the ALP which was accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8, 2021 (2021) 127 taxmann.com 677 (Mumbai-Trib) has decided this issue with identical facts relating to furnishing of segmental data of Profit Loss Account of AE and non AE segment has deleted the penalty levied under section 271G. The relevant portion of the order is hereby reproduced as below:- We find, that the aforesaid order of the Tribunal had thereafter been upheld by the Hon'ble High Court of Gujarat in D. Navinchandra Exports (P.) Ltd. 's case (supra). In the backdrop of the aforesaid facts, we herein respectfully follow the view taken by the Tribunal in the case of D. Navinchandra Exports (P.) Ltd. (supra), wherein it was observed that considering the practical difficulties involved in furnishing the segmental deta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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