Priya Blue Industries Pvt. Ltd. Vs DCIT (ITAT Ahmedabad)
ITAT Quashes ₹1 Lakh Penalty in Transfer Pricing Case Citing Procedural Default; ITAT Quashes S.271BA Penalty on Transfer Pricing Report Technical Default; ITAT Allows Assessee Appeal, Quashes Section 271BA Penalty Despite Late Electronic Filing; Tribunal Rules Penalty Under Section 271BA Not Sustainable for Pre-Search Filing of Form 3CEB. Procedural Default Cannot Attract Penalty: ITAT Sets Aside Section 271BA Levy. The Ahmedabad ITAT set aside a ₹1 lakh penalty under Section 271BA, ruling that failure to electronically file the Form 3CEB transfer pricing report was a mere technical and procedural default. Crucially, the report was prepared before the search and later physically filed with the Transfer Pricing Officer (TPO).
The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, has granted relief to a company by setting aside a penalty of ₹1,00,000 levied under Section 271BA of the Income Tax Act, 1961, for the failure to timely furnish the required Transfer Pricing (TP) report (Form 3CEB). The Tribunal ruled that the assessee’s lapse was a procedural and technical default, not a deliberate failure warranting penalty.
Background of the Case
The case involved Priya Blue Industries Pvt. Ltd., whose original assessment for A.Y. 2016-17 was completed under scrutiny (Section 143(3)). A subsequent search operation under Section 132 was conducted on the group in November 2019, leading to a reassessment under Section 153A.
