Re: Transfer Pricing adjustment

I refer to Question 80 of FAQ wherein it is mentioned that appeal in respect to penalties which are not in relation to quantum assessment needs to be settled separately.

For one of my client, we have received penalty notice under section 271(1)(c), 271AA and 271G, here it is important to mention that penalty is only initiated and no penalty order is yet passed by the AO. Our clients are going in VsV for quantum appeal.

If our clients opt for VsV for quantum whether penalty under section 271(1)(c), 271AA and 271G which was initiated but not levied would be waived off?

Please refer Q.no 80  Whether appeal against penalties that are not related to quantum assessment like penalty U/S 271B, 271BA, 271DA of the Act etc. are also waived upon settlement of appeal relating to 'disputed tax?  Ans . No, appeal against such penalty order is required to be settled separately.

In the said answer the S. 271AA and 271G  are  not covered . S. 271AA deals with failure to keep and maintain information and documents etc and S.271G deals with  penalty for failure to furnish information or document  under section 92D .  Accordingly the revenue may levy the penalty , the assessee may not get the immunity  . Considering the spirt of the Scheme once the tax inn dispute is settled the revenue may not levy the penalty .

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