9911796707
TMI Blog2024 (6) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... ty u/s 271G of the Act and at the same time has not proposed any Arm s Length Price adjustment. In the similar facts on record, there are several decisions where various Coordinate Bench of this Tribunal has deleted the penalties. We observe that Ld. CIT(A) has relied on the decision of Annapurna Business Solutions [ 2011 (12) TMI 224 - ITAT HYDERABAD] and Magick Woods Exports [ 2012 (10) TMI 205 - ITAT CHENNAI] in which the relevant Coordinate Bench has deleted the penalty u/s 271G. Even in this case CIT(A) has deleted penalty u/s 271G of the Act with the observation that levy of penalty u/s 271G of the Act is neither fair nor reasonable and it is not justified in the present facts of the case viz., the nature of diamond trade, substantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , purchase and expenses and submitted the segment wise data on AE and Non-AE sales and worked out the OP/Sales Margins. The above said data was submitted before Transfer Pricing Officer. The Transfer Pricing Officer has not discussed anything in his report and considering the difficulties in the diamond industry and complication involved in polished and non-polished diamonds, the Transfer Pricing Officer has accepted the ALP and not proposed any adjustment. However, proceeded to levy penalty under section 271G of the Act, for the reason that assessee has not furnished required informations. 4. Based on the above facts on record and none appeared on behalf of the assessee from the date of initiation of the appeal proceedings in this case. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observation that levy of penalty under section 271G of the Act is neither fair nor reasonable and it is not justified in the present facts of the case viz., the nature of diamond trade, substantial compliance made by the assessee and the reasonable cause submitted before Transfer Pricing Officer and above all when there is no adjustment made in the Arm's Length Price, the levy of penalty under section 271G is hereby deleted. After considering the facts on record and findings of the Ld. CIT(A) we do not find any reason to interfere with the findings of the Ld. CIT(A). Accordingly, ground raised by the revenue is dismissed. 7. In the result, the appeal filed by the revenue is dismissed. Order pronounced in the open court on 03rd January, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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