https://www.taxtmi.com/caselaws?id=768360 Penalty under section 271AA was not leviable where the obligation relied on was introduced by insertion of clause (iii) with effect from 01.07.2012, because pre-existing transfer pricing records could not be tested against a later-expanded documentation requirement. The assessee's explanation that the international transaction value difference arose from insurance and freight components, with supply recorded on FOB basis and documentation on CIF basis, was accepted as plausible. The provision being penal in nature, its application required a fair and objective exercise of discretion, and penalty was therefore not automatic. The assessee was exonerated. en-us Wed, 26 Mar 2025 00:00:00 +0530 Sat, 05 Apr 2025 08:23:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768360 Penalty under section 271AA was not leviable where the obligation relied on was introduced by insertion of clause (iii) with effect from 01.07.2012, because pre-existing transfer pricing records could not be tested against a later-expanded documentation requirement. The assessee's explanation that the international transaction value difference arose from insurance and freight components, with supply recorded on FOB basis and documentation on CIF basis, was accepted as plausible. The provision being penal in nature, its application required a fair and objective exercise of discretion, and penalty was therefore not automatic. The assessee was exonerated. Case-Laws Income Tax Wed, 26 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768360