The Assessing Officer levied the penalty on TP adjustment . On appeal CIT (A) held that provisions of Explanation 7 to Section 271(1)(c) are not attracted. . On appeal by the revenue the Tribunal held that the assessee has prepared its TP report in good faith and with due care. There is nothing on record to disprove good faith and due diligence discharged by assessee in determining ALP of transactions in TP report submitted by assessee. Accordingly Explanation 7 to section 271(1)(c) is not attracted . Appeal of revenue was dismissed .
ITO v. Tianjin Tianshi India P. Ltd. (2020) 189 DTR 26 / 205 TTJ 107 (Delhi)(Trib.) ITO v. Tianjin Tianshi India P. Ltd. (2020) 189 DTR 26 / 205 TTJ 107 (Delhi)(Trib.)
S. 271(1)(c) : Penalty – Concealment – Failure to deduct tax at source – Transfer pricing adjustments- Explanation 7- Deletion of penalty is held to be justified . [ S.92C ]