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Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2016-17, arises against the Commissioner of Income Tax (Appeals) [in short, the “CIT(A)”], Delhi’s-44 order dated 29.03.2025 having DIN and order no. ITBA/APL/S/250/2024-25/1075258494(1), dated 29.03.2025 involving proceedings under section 271AA of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It transpires during the course of hearing that the assessee/appellant herein is aggrieved against both the learned lower authorities’ respective findings levying section 271AA penalty in issue of Rs.2,92,522/- on account of its alleged failure in reporting the international transactions in the nature of Advertisement, Marketing and Promotion “AMP” with related parties.
That being the case, a perusal of the assessee’s grounds herein sufficiently reveal that it has already succeeded in hon’ble jurisdictional high court decision (ITA 643/2014, 675/2014, 676/2014, 677/2014 and 950/2014) in assessment year 2006-07 to 2010-11 that such “AMP” transactions are not covered under section 92B of the Act.
We thus conclude in this admitted undisputed clinching factual backdrop that the learned department authorities could not have levied the impugned section 271AA penalty alleging non-reporting of the assessee’s “AMP” expenses as an international transaction under section 92B of the Act which is hereby deleted in very terms.
This assessee’s appeal is allowed.