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TMI Blog2023 (7) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... cember 2015, but it is a settled law that if a statute is curative or merely declaratory of the previous law, retrospective operation is generally intended. CIT(A) held that the penalty provisions u/s 271-I of the Act will not be applicable in the case and therefore CIT(A) deleted the same. As gone through the above findings of ld CIT(A) and noted that there is no infirmity in the conclusion reached by ld CIT(A). That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. Decided in favour of assessee. - ITA No. 103/SRT/2020 - - - Dated:- 26-6-2023 - Shri Pawan Singh, JM And Dr. A.L.Saini, AM For the Appellant : Shri Vinod Kumar Sr. DR For the Respondent : Shri Sapnesh R. Sheth, CA ORDER PER DR. A. L. SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the Revenue, pertaining to the assessment year 2016-17, is directed against the order passed by the Learned Commissioner of Income Tax(Appeals)-3, Surat [for short to as CIT(A) ] dated 13.02.2020, which in turn arises out of a penalty order passed by the Asstt. Commissioner of Income Tax Circle-3(2), Surat /Assessing Officer ( assessing officer for short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see failed to provide Form No.15CA/15CB, in 70 cases, therefore assessing officer held that the penalty provision u/s 271-I of the Act is applicable. The section 271-I of the Act was inserted w.e.f 01.06.2015, which mandates, that if the person failed to furnish such information before the assessing officer or furnishes inaccurate particulars, the assessing officer may levy a penalty of Rs. 10000/-. In response to the notice of the assessing officer, the assessee furnished its reply before the assessing officer on dated 04.06.2019 and explained before the assessing officer that relevant Form was not amended by the government, so penalty should not be levied. However, assessing officer rejected the contention of the assessee and held that considering the facts and circumstances of the case and legal position, the assessee committed a default by not furnishing the requisite Form 15CA/certificate before him in respect of 70 foreign remittance and therefore liable for levy of penalty u/s 271-I of the Act and hence assessing officer imposed penalty of Rs. 70,00,000/-u/s 271-I of the Act, for the defaults. 4. Aggrieved by the order of Assessing Officer, the assessee carried the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the penalty u/s 271-1, levied by the assessing officer was prior to this period i.e. 01.06.2015 to 31.03.2016. Thus, the amendments mentioned in the said Notification are not applicable in the case of the assessee for the year under consideration. The retrospective operation of this amendment is not mentioned in the said Notification. Therefore, ld DR contended that penalty levied by the assessing officer should be confirmed. 6. On the other hand, Shri Sapnesh R Sheth, Ld. Counsel for the assessee defended the order passed by the Ld. CIT(A) and pleaded that all the details were filed online before the assessing officer. The remittance made by the assessee was against the import of goods and does not attract the provision of withholding tax and therefore the requirement to furnish the details u/s 195(6) r.w. Rule 37BB is not mandatory. The Form 15CA/15CB are required to be submitted only for those payments which are chargeable to tax in India and therefore later on the Government amended the provision of section 195(6) of the Act by issuing notification no. G.S.R. 978(E) dated 16th December, 2015. Besides, there was conflict between section 195 and rule 37BB regarding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Scheme (LRS) Further the list of payments of specified nature mentioned in Rule 37BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports. Following are the five new example payment types: 1. Advance payment against imports 2. Payment towards imports-settlement of invoice 3. Imports diplomatic missions 4. Intermediary trade 5. Imports below Rs. 5,00,000/- (For use by ECD officers) 8. Therefore, assessee submitted before ld CIT(A) that there was conflict between section 195 and rule 37BB regarding the compliance of Form 15CA, which was later on amended by the government by Notification No.G.S.R.978(E) dated 16th December, 2015. So, there is lack of clarification of words expressively in the provisions only during this assessment year and no express specification have been made for penalty for each default. So, penalty under section 271-I should not be levied for non-furnishing of Form 15CA. 9. The ld CIT(A), after considering the submission of the assessee, observed that the remittance made by the assessee was against the import of goods and does not attract the provision of withholding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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