Allowing the appeal of the assessee the Tribunal held that the assessee applied the TNMM on the international transactions of \u2018Software development\u2019 in the manner prescribed and computed the ALP in good faith and with due diligence. Simply because certain comparables chosen by the assessee were found to be not comparable by the TPO, the good faith and due diligence cannot be said to be lacking. It is simply a difference of opinion between the assessee and the authorities on the comparability or otherwise of some companies. While disposing of the quantum appeal, we have held that the three comparables included in the final tally of comparables, are actually not comparable and liable to be excluded. As such, by treating the three companies as comparable, the assessee cannot be said to have acted in a\u00a0mala fide\u00a0manner or not in good faith. Levy of penalty was deleted. (AY. 2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271(1)(c) : Penalty\u2013Concealment\u2013Transfer pricing adjustment\u2013 Software development\u2013Levy of penalty is held to be not justified. [S. 92C]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4971","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1ib","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=4971"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4971\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=4971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=4971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=4971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}