Mangal Pulses Private Limited, Delhi V. ACIT,Transfer Pricing Officer-2(2)(2), New Delhi

ITA 791/DEL/2020

AI Insights

The case involves Mangal Pulses Private Limited, which appealed against a penalty of Rs. 2,23,89,024 imposed under section 271G of the Income Tax Act for non-compliance in furnishing information and documents as required under section 92CA(3). The penalty was initially levied by the Assessing Officer due to the assessee's failure to comply with notices and produce specified documents. The CIT (A) confirmed this penalty. The Tribunal noted the absence of the assessee's representation despite multiple notices and decided the case ex parte. The Tribunal found that the assessee had not adequately explained the reasons for non-compliance and restored the matter to the Assessing Officer for a detailed examination of the assessee's explanations.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302701 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 14-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 12-02-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Transfer pricing

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA No. 791/Del/2020 Asstt. Year: 2014-15 O R D E R PER AMIT SHUKLA, JM The aforesaid appeal has been filed by the assessee against the order dated 24.01.2020 passed by Ld. CIT (A)-44, New Delhi in relation to the penalty proceedings under section 271G. The assessee is mainly aggrieved by levy of penalty of Rs. 2,23,89,024/- under section 271G on account of non furnishing of information and document under section 92CA(3). 2. None appeared on behalf of the assessee despite services of notice to the assessee on various occasion sand also notice sent through email. Accordingly, appeal of the assessee is being decided ex parte. 3. On the perusal of the impugned penalty order we find that the Assessing Officer has levied penalty under section 271G being 2% of value of specified domestic transaction for non compliance to notices and non Mangal Pulses Private Limited, BD-84, Pitampura, Delhi- 110 088 PAN AAGCM6015Q Vs. ACIT, Transfer Pricing Officer-2(2)(2) New Delhi. (Appellant) (Respondent) Assessee by: None Department by: Dr. Maninder Kaur, Sr. Dr Date of Hearing 15.06.2023 Date of pronouncement 26 .07.2023 ITA No.791/Del/2020 2 production of documents specified. He noted that assessee did not appear on the specified date on 09.03.2017 nor has sought any adjournment and accordingly penalty of Rs. 2,23,89,024/- has been levied. This has also been confirmed by the Ld. CIT (A). It is seen from the submissions incorporated in the appellate order that the only contention of the assessee has been that TPO has accepted the transfer pricing study report and has not drawn any adverse inference in respect of SDT undertaken by it during the financial year 2013-14. However, nowhere it has been stated by the assessee as to whether any notices were received by the assessee as issued by the Assessing Officer/Transfer Pricing Officer or assessee has sought for any extension of time under the proviso to sub section (3) of section 92D. At least assessee should have given some explanation as to what was the reason that assessee could not file the requisite documents as specified under Rule 10D. Accordingly, the matter is restored back to the file of the Assessing Officer wherein the assessee should give specific explanation and the reason for non compliance and in case such reasons are found to be plausible and on bonafide reason then penalty should be deleted. The assessee should comply with the notices issued by the Assessing Officer and Assessing Officer should decide the issue afresh after giving due opportunity to the assessee. 4. In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 26 th July, 2023. sd/- sd/- (G.S. PANNU) (AMIT SHUKLA) PRESIDENT JUDICIAL MEMBER Dated: 26/07/2023 Veena Copy forwarded to - 1. Applicant 2. Respondent 3. CIT ITA No.791/Del/2020 3 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order