DCIT Vs Priya Blue Industries Pvt. Ltd. (ITAT Ahmedabad)
ITAT Ahmedabad held that penalty u/s.271AA of the Income Tax Act cannot be levied without specifying the required documents failed to be maintained/furnished by the assessee. Thus, appeal of the revenue dismissed.
Facts- he Respondent/assessee is a Private Limited Company engaged in the business of Ship Breaking, Recycling and Sale of Scrapes. Since there were Transfer Pricing issues in respect of International Transactions or Specified Domestic Transaction or both, the case was referred to Transfer Pricing Officer [TPO] u/s.92CA(1) of the Act. TPO after making detailed enquiry u/s.92CA(2) of the Act, passed the Transfer Pricing Order u/s.92CA(3) of the Act making an upward adjustment of Rs.1,54,77,374/-. As the assessee has not chosen to challenge the TPO’s order before Dispute Resolution Panel, therefore AO passed the final assessment order u/s. 143(3) w.s. 92CA(3) r.w.s. 153A of the Act.
TPO observed that the assessee had filed requisite details, therefore not recommended initiation of penalty proceedings u/s. 271AA of the Act. However, AO levied penalty u/s.271AA of Rs.5,36,25,808/- on the alleged ground that assessee failed to maintain documents specified u/s.92D read with Rule 10D of the IT Rules. CIT(A) deleted the penalties. Being aggrieved, the present appeal is filed by the revenue.
