IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

271(1)(c) of the Income Tax Act, 1961 (in short “The Act”) by NFAC and Sl.Nos.19 to 24 are with regard to sustaining penalty u/s 270A of the Act by NFAC arising out of different orders of NFAC for the respective above assessment years. 2. Facts of the case are that IBM is a multinational corporation, headquartered

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

271(1)(c) of the Income Tax Act, 1961 (in short “The Act”) by NFAC and Sl.Nos.19 to 24 are with regard to sustaining penalty u/s 270A of the Act by NFAC arising out of different orders of NFAC for the respective above assessment years. 2. Facts of the case are that IBM is a multinational corporation, headquartered

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

271(1)(c) of the Income Tax Act, 1961 (in short “The Act”) by NFAC and Sl.Nos.19 to 24 are with regard to sustaining penalty u/s 270A of the Act by NFAC arising out of different orders of NFAC for the respective above assessment years. 2. Facts of the case are that IBM is a multinational corporation, headquartered

IBM DEUTSCHLAND GMBH,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\n\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\n\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

19 of 56\n4.2.3 Further, the AO in the penalty order has taken shelter under\nExplanation 3 to section 271(1)(c) without considering the specific\nexclusion for cases where the taxpayer fails to furnish return of\nincome on account of ‘reasonable cause'. Moreover, cases where the\noriginal return of income is filed by the taxpayer under section

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

The appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM AUSTRALIA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\n\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\n\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM ISRAEL LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

The appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

SIMPLEX TMC PVT LTD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1(1),BENGALURU, BENGALURU

In the result, the appeal of the assessee is allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2018-19

2 thereof intended to directory'. In other words, while payment of interest is mandatory levy of penalty is discretionary. It is trite position of law that discretion is vested and authority has to be exercised in a reasonable and rational manner depending upon the facts and circumstances of each case. Plain reading of section 271AAB

IBM AUSTRALIA LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM CHINA HONG KONG LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

2)\nBangalore\nPAN NO: AABCI4837K\nAPPELLANT\nRESPONDENT\nAppellant by\nShri Sharath Rao, A.R.,\nShri Rajat Nahata, A.R. &\nShri Dhiraj R., A.R.\nRespondent by\nShri D.K. Mishra, D.R.\nDate of Hearing\n10.05.2024\nDate of Pronouncement\n20.05.2024\nORDER\nPER BENCH:\nIncome Tax Appeals at Sl.Nos.1 to 18 above are relating to\nsustaining the penalty levied u/s 271