Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
ITAT dismissed the Revenue's appeal and upheld the CIT(A)'s deletion of the penalty levied on the assessee under s.271G. The Tribunal held that Rule 10D prescribes thirteen categories of documents to be maintained for international and specified domestic transactions, and an AO initiating penalty proceedings under s.271G must specify which particular document(s) under Rule 10D were not maintained. The penalty order, prepared by the TPO, instead penalised the assessee for failure to benchmark transactions, which does not constitute non-maintenance of documents under s.271G. Consequently, the penalty was untenable and properly deleted.
ITAT dismissed the Revenue's appeal and upheld the CIT(A)'s deletion of the penalty levied on the assessee under s.271G. The Tribunal held that Rule 10D prescribes thirteen categories of documents to be maintained for international and specified domestic transactions, and an AO initiating penalty proceedings under s.271G must specify which particular document(s) under Rule 10D were not maintained. The penalty order, prepared by the TPO, instead penalised the assessee for failure to benchmark transactions, which does not constitute non-maintenance of documents under s.271G. Consequently, the penalty was untenable and properly deleted.
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