M/S YAMUNA POWER & INFRASTRUCTURE LTD.,JAGADHRI vs. DCIT, CIRCLE, YAMUNANAGAR

ITA 1229/CHANDI/2019Status: DisposedITAT Chandigarh19 July 2024AY 2014-15Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)11 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty was unsustainable because it was initiated for non-reporting but levied for failure to maintain accounts, a discrepancy in grounds. Furthermore, the assessee had a reasonable basis for non-reporting based on professional advice, and no adverse view was taken by the TPO on the transactions.

What were the facts?

The assessee company failed to report certain specified domestic transactions in Form 3CEB, leading to a penalty under Section 271AA. The assessee claimed to have acted on professional advice that only transactions exceeding a certain threshold needed to be reported.

What were the issues?

Whether the penalty under Section 271AA is sustainable when initiated on one ground and levied on another, and whether reasonable cause exists for non-reporting of specified domestic transactions based on professional advice.

Which sections of the Income-tax Act were involved?

Section 271AA,Section 92D,Section 92E,Section 273B

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE "ी िव"म िसंह यादव, लेखा सद" एवं "ी परेश म. जोशी, "ाियक सद" BEFORE: SHRI. VIKRAM SINGH YADAV, AM & SHRI. PARESH M. JOSHI, JM आयकर अपील सं./ ITA NO. 1229/Chd/2019 िनधा"रण वष" / Assessment Year : 2014-15 Yamuna Power & Infrastructure Ltd. बनाम The DCIT Sardana Nagar, Ambala Road, Yamuna Nagar Jagadhri, Yamuna Nagar-135003 "ायी लेखा सं./PAN NO: AAACY0554A अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज" की ओर से/ Revenue by : Shri Dharam Vir, JCIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 25/04/2024 उदघोषणा की तारीख/Date of Pronouncement : 19/07/2024

आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the assessee against the order of the Ld. CIT(A), Panchkula dt. 19/06/2019 wherein the assessee has challenged the action of the Ld. CIT(A) in sustaining the levy of penalty under section 271AA amounting to Rs. 5,55,887/- for alleged default in not reporting the specified domestic transaction in Form No. 3CEB.

2.

Briefly the facts of the case are that the assessee company filed

The order continues below.

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