Held that the enhancement of the transfer pricing adjustments directed by the Commissioner (Appeals) was challenged by the assessee before the Tribunal. The Tribunal directed the inclusion of certain comparables and exclusion of others. The contention of the assessee that if the directions of the Tribunal for inclusion or exclusion of comparables was carried out by the Assessing Officer there would remain no basis for making any transfer pricing adjustments had not been controverted by the Department. In such a situation, no adjustment on the transfer pricing issue would subsist and there would be no question of penalty under section 271(1)(c) on such addition. Therefore the penalty under section 271(1)(c) was to be deleted.(AY. 2011-12)
Trip Advisor Travel India Pvt. Ltd. v.Asst. CIT (2023)101 ITR 28 (SN)(Delhi) (Trib)
S. 271C : Penalty-Failure to deduct at source-International transaction-Arm’s Length Price-Concealment of income or furnishing inaccurate particulars-Penalty levied on enhancement of Transfer Pricing adjustments-Tribunal directing inclusion or exclusion of certain comparables-If Directions Of Tribunal Given Effect By Assessing Officer Basis Transfer Pricing Adjustments Would Not Survive-No Question Of Penalty. [S. 92C, 92CA (3)]