TPO had accepted ALP; however, he proceeded to levy penalty under section 271G for reason that assessee had not furnished required informations. CIT(A) deleted the penalty. On appeal the Tribunal held that since substantial compliance was made by assessee and reasonable cause submitted before TPO and particularly when there was no adjustment made in arm’s length price, penalty under section 271G is rightly deleted. (AY. 2011-12)
ACIT v. Eurostar Diamonds India (P.) Ltd. (2024) 205 ITD 324 (Mum) (Trib.)
S. 271G : Penalty-Documents-International transaction-Transfer pricing-TPO had not proposed any adjustment-Levy of penalty is not justified. [S.92C, 92D]