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TMI Blog2025 (1) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... Office and confirmed by learned CIT(A) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts of the case are that assessee is engaged in the business of manufacturing of diamond by cutting and polishing of rough diamond and sale thereof. The assessee filed its return of income for assessment year 2016-17 on 19.09.2016 declaring income at Rs. 17,84,880/-. The case was selected for scrutiny. During assessment, Assessing Officer noted that assessee has made 20 transactions of foreign remittance. However, assessee could not furnish Form No.15CA/15CB in respect of these overseas transactions. The Assessing Office while passing assessment order accepted returned income of assessee completed under section 143(3) of the Act on 23.12.2018. However, the Assessing Officer while passing assessment order initiated penalty under section 27I I. The Assessing Officer issued show cause notice, as to why penalty under section 271I should not be initiated. The Assessing Office issued show cause notice about default in filing Form Nos.15CA/15CB in respect of 20-foreign remittance. However, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. The assessee failed to furnish such information before Assessing Officer in Form No.15CA. The Assessing Officer considered 17 foreign remittances for which the assessee was required to furnish Form15CA/ 15CB and levied penalty @ Rs. 1,00,000/- for each of the default aggregating Rs. 17,00,000/- vide penalty order dated 28.06.2019. 3. Aggrieved by the penalty imposed under section 271-I of the Act, assessee filed appeal before Ld.CIT(A). Before Ld.CIT(A) assessee made similar submission as made before Assessing Officer. The LD. CIT(A) after considering the submission of the assessee held that assessee is relying the amended provision, which is applicable from assessment year 2017-18. The Assessing Office has rightly levied the penalty for failure to furnish Form No.15CA on foreign remittances made by assessee. Further, aggrieved, assessee has filed present appeal before the Tribunal. 4. We have heard the submission of Ld. Authorized Representative (Ld.AR) for the assessee and Ld. Senior Departmental Representative (Ld. Sr-DR) for the Revenue. The Ld. AR of the assessee submits that ground of appeal raised by assessee is squarely covered by the decision of this Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appeal has raised similar ground of appeal as has been raised in case of M/s Vinay Diamond in ITA No.103/SRT/2020 (supra), wherein by considering the Notification No.G.S.R.978(E) dated 16.12.2015 issued by Central Board of Direct Taxes held that there are certain payment of specified nature mentioned in Rule 37BB which do not require submission of Form No. 15CA/15CB and one of such payment includes advance payment against import. The relevant finding of Tribunal is extracted below: 7. We have considered the rival submissions and perused the relevant finding given in the impugned order ld CIT(A). We note that assessee is in the business of trading, import and manufacturing of diamonds. The rough diamonds are imported and payments are made through foreign outward remittance in foreign currency. The assessing officer held that the provision of section 195(6) was amended by Finance Act, 2015 which came w.e.f. 01.06.2015 and as per the amended provision the assessee had to provide the Form 15CA to the assessing officer for each transaction. The assessee had made 80 transactions of foreign remittance out of which 10 transactions, were made between the period 01-04-2015 to 31-05-2015, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 tax and therefore the requirement to furnish the details u/s 195(6) r.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 section195(6) by issuing notification no. G.S.R. 978(E) dated 16th December, 2015. The remittances which were made were against the import of goods and do not attract the provision of withholding tax and the requirement to furnish the details u/s 195(6) r.wRule 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 do not require RBI approval under its Liberalized Remittance Scheme (LRS). 10. The ld CIT(A) also noted that 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'. Hence, apparently there was conflict between section 195 and rule 37B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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