TaxTMI 
TaxTMI 
2020 (10) TMI 719
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....tion u/s 132 of the Income Tax Act was conducted in the Micromax Group of cases and on assessee's premises on 10.02.2011. Assessee filed its return of income for A.Y. 2011-12 on 30.09.2011 showing total income of Rs. 299,42,85,775/-. Subsequently, the assessment was framed u/s 144C r.w.s 143(3) vide order dated 21.10.2014 and the total income was determined at Rs. 769,70,64,640/-. Penalty proceedings u/s 271AA was initiated along with the assessment order. The assessee was called upon to show-cause as to why penalty u/s 271AA of the Act not be levied to which assessee made the detailed submissions inter alia contending that it has kept and maintained all the information about the international transaction in its transfer pricing report, the....
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....aining to A.Y 2011-12 in it's transfer pricing report which was submitted to Transfer pricing officer during the assessment proceedings. Books of the assessee company were seen to have been audited by Chartered Accountant and the report furnished in Form 3CEB and the same was submitted by the assessee during the assessment proceedings. These facts are evidence enough that assessee was maintaining the information and documents as prescribed under the law regarding International Transactions. Assessee had reported the international transaction which in it's opinion is liable to be transfer pricing study, in it's transfer pricing study and in Form 3CEB which was furnished by the assessee during the assessment proceedings, a copy of acknowledge....
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....hat finally no adjustment has been made in respect of Rs. 26,41,92,634/- on which penalty was levied by TPO and ALP is determined at the value declared by the assessee. He further submitted that AO has levied penalty u/s 271AA on the ground that assessee had failed to report the international transactions and had initiated the penalty by invoking Clause - (ii) and (iii) of Section 271AA of the Act. He submitted that provision of Section 271AA were substituted by Finance Act 2012 w.e.f 1st April 2012 wherein Clause (ii) & (iii) were inserted and as per earlier provisions, penalty u/s 271AA could be levied only on the issue of failure to keep and maintain any such information/ document in support of international transactions and that there w....