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TMI Blog2025 (3) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... sole ground raised by the Revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... the TPO observed that the assessee has not reported international transactions to the following extent: - Sr. No. Name of the Associated Enterprises Amount of International transactions as per Form No.3CEB of respective AEs with the assessee (in Rs. ) Amount of International transactions as reported by the assessee (in Rs. ) Difference in the amount of international transactions (in Rs. ) 1. Siemens Limited 15,057,851,644 682,542,660 14,375,326,984 2 Siemens Information Systems Limited 3,696,736,059 76,424,160 3,620,311,899 3. Siemens Power Engineering Private Limited 709,533,626 45,326,352 664,207,274 4. Siemens Corporate Finance Private Limited 107,513,779 576,688 10,6937,091 Flender Limited 576,688 576,688 0 Total 19,571,635,108 804,851,860 18,766,783,248 8. In its submission before the TPO, the assessee submitted that it has declared only those international transactions in respect of which it has earned income from India. The other transactions with the Associated Transactions in India were not declared as there was no income element. The TPO, vide order dated 31.10.2011 passed under section 92CA(3) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order passed under section 92CA(3) of the Act made an adjustment by adopting an ad hoc rate of 10% of the international transactions declared by the assessee. On the basis that the assessee has not furnished the documents and information pertaining to all international transactions entered into by the assessee as envisaged under section 92D, penalty under section 271G of the Act was levied on the assessee. 12. In order to decide the issue at hand, it is relevant to note the provisions of section 271G of the Act, which reads as follows: - "271G. If any person who has entered into an international transaction fails to furnish any such information or document as required by sub-section (3) of section 92D, the Assessing Officer or the Commissioner (Appeals) may direct that such person shall pay, by way of penalty, a sum equal to two per cent of the value of the international transaction for each such failure." 13. From a plain reading of the aforesaid provisions, it is evident that the penalty is leviable under section 271G of the Act if the assessee fails to furnish any information or documents as required under section 92D(3), in respect of international transaction entered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record, it is evident that no notice under section 92D(3) of the Act was issued requiring the assessee to furnish the information or document in respect of the international transaction not disclosed by the assessee. Further, we find that neither in the show cause notice dated 19.04.2013 issued under section 271G of the Act nor in the penalty order dated 30.04.2013 passed under section 271G of the Act there is any reference to any notice issued under section 92D(3) requiring the assessee to furnish any information or document in respect of the international transaction entered into by the assessee, which was not complied by the assessee. 16. We find that a similar issue came up for consideration before the Coordinate Bench of the Tribunal in Procter & Gamble Home Products (P) Ltd. vs. DCIT, reported in (2020) 180 ITD 194 (Mum). While quashing the penalty levied under section 271G of the Act, the Co-ordinate Bench in the aforesaid decision, held that unless and until a specific defect is pointed out in the documents submitted by the assessee under section 92D, penalty under section 271G of the Act cannot be levied. The relevant findings of the Coordinate Bench in the aforesaid d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been clarified this issue in Para 11 to 14 by Hon'ble Delhi High Court by interpreting the provisions as under: - "11. Rule 10D(1) consists of clauses (a) to (m). Clause (m) states any other information, data or document, including information or data relating to the associated enterprises, which may be relevant for determination of arm's length price. A bare perusal of sub-clauses (a) to (m) would indicate that some of the information and details pertain to the assessee and the associated enterprise, their ownership, structure, address, name, broad description of business etc. The assessee's are also required to maintain details like, nature and terms of international transaction, property or services provided and quantum and value of each transaction etc. However, some of the clauses are very broad and wide like clause (m) mentioned above. These clauses relate to record of economic and market analysis, forecasts, budget and other financial estimates prepared by an assessee, record of uncontrolled transactions for realising their comparability with international transactions including record of nature, terms and conditions relating to uncontrolled transactions with third ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Assessing Officer or Commissioner (Appeals) may require a person to furnish any information or document in respect thereof and on failure of the said person to furnish the documentation within the specified time, penalty under Section 271G can be imposed. Thus, for imposing penalty the Revenue must first mention the document and information, which was required to be furnished but was not furnished by the assessee within the specified time. The documentation or information should be one specified in Rule 10D, which has been formulated in terms of Section 92D(1) of the Act. Looking from any quarter and angle, the appeal of the Revenue is misconceived, totally lacking in merits and is, therefore, dismissed." 9. Similarly, Jaipur Tribunal in assessee's sister concern case in the case of Gillette India Ltd. (supra) has considered this issue and Hon'ble High court of Rajasthan High Court in the case of Gillette India Ltd. (supra) has finally held as under: - "8. Copy of the notice dated 23.03.2011 issued by the Assessing Officer has not been filed on record by the Revenue along with the present grounds of appeal. We do not know what was requisitioned and asked for by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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