2013 (1) TMI 183

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....tances of the case in confirming the penalty of Rs. 1,00,000/- under section 271BA of the I.T. Act imposed by DCIT Circle 13(1) New Delhi." 2. The only issue for consideration relates to confirming the penalty of Rs.1,00,000/- imposed under sec. 271BA of the Act. The facts of the case stated in brief are that during the year under consideration the assessee had international transactions and was required to furnish Transfer Pricing Report under sec. 92E of the Income-tax Act, 1961 on or before the specified due date in respect of the year under consideration. Since the assessee failed to furnish report by due date i.e. 31st October, 2006, the AO initiated penalty proceedings under sec. 271BA of the Act. During the course of penalty proce....

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....ue date, penalty u/s 271BA was to be imposed. The AO accordingly levied the penalty of Rs.1,00,000/- u/s 271BA of the Act. 3. On appeal before the CIT(A) the assessee reiterated the similar arguments. The learned CIT(A) after consideration of the submissions made by the assessee and the contents of the order passed by the AO observed that the assessee was required to furnish accountant's report in Form No.3CEB on or before 31st October, 2006. Since the assessee had failed to furnish accountant's report in Form No.3CEB as required u/s 92E of the Act on or before the due date, penalty under sec. 271BA of the Act was leviable. The learned CIT(A) accordingly upheld the levy of penalty u/s 271BA of the Act. 4. Before us the learned AR of t....

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....ing the previous year shall be in form No. 3CEB and verified in the manner indicated therein. From the language of sec. 92E it is clear that the report in Form 3CEB is to be filed by the specified date i.e. due date for filing the return. Nowhere in sec. 92E or Rule 10E it is mentioned that such report should be annexed with return of income. Therefore, the contention of the learned AR of the assessee that as per Rule 12(2) the assessee was not required to file the report in Form 3CEB. Rule 12(2) of the Income-tax Rules, 1962 specifies that the return of income and return of fringe benefits shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to h....