TaxTMI 
TaxTMI 
2021 (8) TMI 663
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....9; Bench, Chennai (for brevity "the Tribunal") for the assessment year 2006-07. 2.The appeal was admitted on 13.07.2015, on the following substantial question of law:- "Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in upholding the order of the CIT(A) directing the Assessing Officer to delete the penalty levied under Section 271G of the Income Tax Act, 1961?" 3.The assessee is a Public Limited Company engaged in the manufacture of foot care and footwear products to the domestic and export markets. It is a joint venture between a UK Company and an Indian Company. For the assessment year under consideration 2006-07, the assessee filed its return of income admitting total loss. The c....
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....otal income/loss returned by the assessee was accepted and the assessment was completed. It is thereafter, the Assessing Officer proposed to levy penalty by invoking his power under Section 271G of the Act. 7.In terms of Section 92D of the Act, which deals with maintenance, keeping and furnishing of information and document by such person, the Assessing Officer or the Commissioner (Appeals) is empowered to require any person referred to in sub-section (1) of Section 92D to furnish any information or document referred therein within a period thirty days from the date of receipt of a notice by exercising power under sub-section (3) of Section 92D of the Act. 8.If the assessee fails to furnish the information called for, Section 271G pro....
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....es that the question to be decided is whether the letter issued by the TPO, as mentioned above dated 25.11.2008, is a notice under Section 92D(3) or not, it does not render any finding. In our considered view, the TPO's notice dated 25.11.2008, undoubtedly, is a notice under Section 92D(3) of the Act. It is not necessary for the authority to verbatim repeat the statutory provision. Sub-section (3) of Section 92D empowers the Assessing Officer or the Commissioner (Appeals) to require any person who has entered into an international transaction to furnish any information or document, as may be prescribed under sub-section (1) within a period of thirty days. 10.On going through the TPO's notice dated 25.11.2008, all the ingredien....
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....ourt of Kerala did not show any indulgence with regard to the penalty, which was imposed under Section 271C and Section 273B of the Act in the case of CIT v. Thomas Muthoot reported in (2015) 61 taxmann.com 76 (Kerala). The assessee pleaded that he was under the bonafide belief that under Section 194A, they were not liable to deduct tax at source on the interest paid by a partner to the firm and thus, pleaded ignorance of the statutory liability to deduct tax. This plea was held to be not acceptable and not bonafide. We find, factually the case cannot be compared with that of the case on hand, where there are several distinguishing factual features, which would go to justify the decision taken by the Tribunal affirming the order passed by t....