Batronics India Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

ITA 1192/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0531 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 31-05-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 25-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Transfer pricing; International transaction
• Section: 92B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1192/HYD/2019 ASSESSMENT YEAR: 2013-14 M/S.BATRONICS INDIA LIMITED, HYDERABAD [PAN: AAACB8231F] VS DCIT, CIRCLE-1(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, AR FOR REVENUE : SHRI WASEEM-UR-REHMAN, DR DATE OF HEARING : 31-05-2021 DATE OF PRONOUNCEMENT : 19-07-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2013-14 ARISES FROM TH E CIT(A)-1, HYDERABADS ORDER DATED 28-06-2019 PASSED IN APPEAL NO.10018/2018-19/DCIT,1(2)/CIT(A)-1/HYD/2019 -20, INVOLVING PROCEEDINGS U/S.271BA OF THE INCOME TAX AC T, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL SEEK S TO REVERSE THE LEARNED LOWER AUTHORITIES ACTION IMPOSIN G SECTION 271BA PENALTY OF RS.1,00,000/- FOR ITS ALLEGED FAILU RE IN REPORTING INTERNATIONAL TRANSACTIONS AS REQUIRED U/S.92 E OF THE ACT. IT IS NOT IN DISPUTE THAT THE ASSESSEE HAD DULY FIL ED ITS FORM-3CEB WHICH LED TO SECTION 92AC REFERENCE MADE BY THE ITA NO. 1192/HYD/2019 :- 2 -: ASSESSING OFFICER TO THE TRANSFER PRICING OFFICER (TP O) FOLLOWED BY THE CONSEQUENTIAL ASSESSMENT DT.31-03-2017. 3. LEARNED DEPARTMENTAL REPRESENTATIVES VEHEMENT CONTENTION DURING THE COURSE OF HEARING IS THAT BOTH THE LOWER AUTHORITIES HAVE RIGHTLY LEVIED THE IMPUGNED PENALTY IN VIEW OF THE FACT THAT THE ASSESSEE HAD NOT REPORTED ITS INTERNATION AL TRANSACTIONS INCLUDING RECEIVABLES, CORPORATE GUARANTEE ETC. HE FAILS TO DISPUTE THAT ALMOST ALL THE SAID INTERNATIONAL TRANSACTIONS ALLEGED TO HAVE BEEN OMITTED IN ASSESSEES FORM- 3CEB CAME TO BE PRESCRIBED VIDE AMENDMENT IN SECTION 92B OF THE ACT BY THE FINANCE ACT, 2012 WITH RETROSPECTIVE EF FECT FROM 01-04-2002 WHEREAS WE ARE IN THE IMMEDIATE NEXT ASSESSMENT YEAR I.E. AY.2013-14. COUPLED WITH THIS, THE ASSESSEE HAD ALREADY SUCCEEDE D ON THE VERY ISSUES BEFORE THE TRIBUNAL IN AYS.2012-13 PROCEEDINGS REGARDING THE CORRESPONDING ADJUSTMENTS. A LL THESE FACTS SUFFICIENTLY INDICATE THAT THE ASSESSEES AL LEGED DEFAULT IN NOT HAVING REPORTED THE CORRESPONDING INTERN ATIONAL TRANSACTIONS IN FORM-3CEB APPEARS TO BE VERY CONDONABL E IN VIEW OF ITS EXPLANATION GIVEN THROUGHOUT. WE ACCORDING LY DELETE THE IMPUGNED PENALTY FOR THIS PRECISE REASON ALONE. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JULY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEMB ER HYDERABAD, DATED: 19-07-2021 TNMM ITA NO. 1192/HYD/2019 :- 3 -: COPY TO : 1.M/S.BATRONICS INDIA LIMITED, C/O. P.MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2.THE DCIT, CIRCLE-1(2), HYDERABAD. 3.CIT(APPEALS)-1, HYDERABAD. 4.PR.CIT-1, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE. 4