Revenue's appeal on penalty deletion under Section 271G dismissed; timely submission of required documents upheld

The Revenue's appeal against the deletion of a penalty under Section 271G for non-filing of a revised Specified Domestic Transaction in Form No. 3CEB online was dismissed. The Tribunal upheld the CIT(A)'s decision, ruling that the penalty could not be imposed as the required details and documents were provided within the specified time. The assessee's compliance with the Transfer Pricing Officer's requirements and submission of transaction-related information supported the dismissal of the appeal. The order was pronounced on July 29, 2022.

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Issues:
Penalty under Section 271G for non-filing of revised Specified Domestic Transaction in Form No. 3CEB online.

Analysis:
The appeal was filed by the Revenue against the order passed by the CIT(A)-12, Ahmedabad for the Assessment Year 2014-15. The Revenue raised grounds of appeal regarding the deletion of the penalty of Rs.68,11,735/- levied under Section 271G of the Income Tax Act. The assessee initially declared income under normal provisions and Section 115JB of the Act, later revising the return. The issue involved International Taxation and Specified Domestic Transaction under Section 92CA. The Assessing Officer observed that the assessee revised the income due to Specified Domestic Transaction but did not file the revised Specified Domestic Transaction in Form No. 3CEB. Consequently, penalty proceedings under Section 271G were initiated. The CIT(A) allowed the appeal of the assessee against the penalty order.

The Revenue contended that the revised Form No. 3CEB was not filed online by the assessee, leading to non-reporting of revised Domestic Transaction, making the assessee liable for penalty under Section 271G. On the other hand, the assessee argued that the penalty can only be imposed if the required information is not furnished within the specified time. The assessee cited relevant case laws to support their argument.

Upon hearing both parties and examining the material on record, it was noted that the revised Form No.3CEB related to a claim under Section 80IA, not the Specified Domestic Transaction. The penalty order mentioned non-filing of revised form No.3CEB online, acknowledging the physical filing of the form. The Tribunal found the assessee complied with the requirements specified by the Transfer Pricing Officer, and the information related to transactions was submitted as requested. The CIT(A) provided detailed findings supporting the assessee's position, leading to the dismissal of the Revenue's appeal. The Tribunal upheld the CIT(A)'s decision, emphasizing that penalty under Section 271G could not be imposed as the necessary details and documents were furnished within the specified time.

In conclusion, the appeal of the Revenue was dismissed, and the order was pronounced in the open court on July 29, 2022.

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