2017 (10) TMI 1591

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....cumstances of the case and in law, the learned Assessing Officer ('AO') has erred in levying and the Hon'ble Commissioner of Income-tax Appeals ['CIT(A)'] has erred in confirming the levy of penalty under Section 271G of the Income-tax Act, 1961 ('Act') of Rs. 48,70,467. 2. On the facts and in the circumstances of the case and in law, the learned AO erred in levying and the Hon'ble CIT(A) erred in confirming the levy of penalty under Section 271G of the Act, even though the learned Transfer Pricing Officer in the transfer pricing order has not disturbed the Arm's Length Price determined by the Appellant. 3. On the facts and in the circumstances of the case and in law, the learned AO erred in levying and t....

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....Act having regard to the fact that there was reasonable cause for not being able to respond to the notices of the learned AO. 3. Briefly stated, the facts of the case are that the assessee filed its return of income for the AY 2008-09 on 30.09.2008 declaring total income of Rs. 24,35,23,345/-. The Assessing Officer (AO) made the assessment u/s 143(3) at Rs. 24,35,23,350/-. The AO observed that the assessee had failed to furnish information or document u/s 92D before the Transfer Pricing Officer (TPO). Therefore, the AO imposed a penalty of Rs. 48,70,467/- u/s 271G. 4. Aggrieved by the order of the AO the assessee filed an appeal before the Ld. CIT(A). We find that the Ld. CIT(A) has dismissed the appeal filed by the assessee on the ground....

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....t is sufficient. The legislature was conscious of this fact and, therefore, had specifically stipulated in Section 92D(3) that the Assessing Officer or Commissioner (Appeals) may require a person to furnish any information or document in respect thereof and on failure of the said person to furnish the documentation within the specified time, penalty under Section 271G can be imposed. Thus, for imposing penalty the Revenue must first mention the document and information, which was required to be furnished but was not furnished by the assessee within the specific time. The documentation or information should be one specified in Rule 10D, which has been formulated in terms of Section 92D(1) of the Act. Looking from any quarter and angle, the a....