DCIT, CHENNAI V. Indian Additives Limited, CHENNAI

ITA 649/CHNY/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4300 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 16-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YAMUNA
• Assessee Lawyers: N VISWANATHAN
• Keywords: Transfer pricing; International transaction
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO. : 649/MDS/2017 / ASSESSMENT YEAR :2005-06 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2(2), CHENNAI 34 V. M/S. INDIAN ADDITIVES EXPRESS HIGH WAY, MANALI, CHENNAI 600 068. PAN: AAACI1445G ( /APPELLANT) ( /RESPONDENT) /APPELLANT BY : MS. YAMUNA, JCIT /RESPONDENT BY : SHRI N. VISWANATHAN, CA /DATE OF HEARING : 11.05.2017 /DATE OF PRONOUNCEMENT : 06.06.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-6, CHENNAI DATED 19.01.2017 DELETING THE PENALTY LEVIED BY THE ASSES SING OFFICER U/S. 271AA OF THE INCOME TAX ACT, 1961 (IN SHORT T HE ACT). 2 I.T.A. NO. 649/MDS/2017 2. MS. JAMUNA, THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS NOT MAINTAINED THE TRANSFER P RICING DOCUMENTATION AS REQUIRED U/S. 10B OF THE ACT. THE REFORE, THE LD.AO LEVIED PENALTY U/S.271AA OF THE ACT. SINCE, THE ASSESSEE FAILED TO MAINTAIN DOCUMENTATION AS REQUIRED U/S.10 B, THE LD.CIT(APPEALS) IS NOT JUSTIFIED IN DELETING THE PE NALTY LEVIED BY THE LD.AO. 3. ON THE CONTRARY, SHRI M. VISWANATHAN, THE LD. RE PRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE ENGAGE D IN THE BUSINESS OF MANUFACTURE OF LUBRICATING OIL. THE TR ANSFER PRICING OFFICER (TPO) HAS NOT MADE ANY ADJUSTMENT AFTER GOI NG THROUGH THE MATERIAL EVIDENCE FILED BY THE ASSESSEE. SINCE NO ADJUSTMENT WAS MADE IN THE TRANSFER PRICING MATTER, THE LD.CIT(APP EALS) BY PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL IN THE ASSES SEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 DELETED THE PENALTY LEV IED U/S.271AA OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE TPO HAS NOT MADE ANY ADJUSTMENT IN THE TRANSFER PRI CING 3 I.T.A. NO. 649/MDS/2017 PROCEEDINGS. THIS TRIBUNAL IN THE ASSESSEES OWN C ASE FOR THE ASSESSMENT YEAR 2006-07 FOUND THAT SINCE NO ADJUSTM ENT WAS MADE WITH REGARD TO INTERNATIONAL TRANSACTIONS, THE RE CANNOT BE ANY LEVY OF PENALTY U/S.271AA OF THE ACT. SINCE THE LD .CIT(APPEALS) HAS PLACED RELIANCE ON THE ORDER OF THIS TRIBUNAL, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED ON 6 TH JUNE, 2017 AT CHENNAI. SD/- SD/- ( . ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, /DATED, THE 6 TH JUNE, 2017. JR. /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. !'# /DR 6. $% /GF