Alleged failure in non-reporting of the trade receivables as an international transaction u/s. 92D of the IT Act

Last updated: 15 September 2021

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The Income Tax Appellate Tribunal (ITAT) Hyderabad has ruled in favour of C3i Support Services Pvt. Ltd. concerning a penalty imposed for allegedly failing to report trade receivables as an international transaction. The tribunal found no reason to sustain the penalty, noting that the relevant legislative amendment clarifying such transactions was made retrospective from 1 April 2002.

Court :
ITAT Hyderabad

Brief :
This assessee’s appeal for Asst. Year 2012-13 arises from the Commissioner of Income Tax (Appeals)-1, Hyderabad’s order dt.11.03.2019 passed in case No.0080/2017-18/DCIT.

Citation :
ITA No.1179/Hyd/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD ‘A’ BENCH, HYDERABAD.
BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND
SHRI L. P. SAHU, ACCOUNTANT MEMBER
(Through Virtual Hearing)
ITA No.1179/Hyd/2019
(Assessment Year : 2012-13)

C3i Support Services Pvt. Ltd.,
Hyderabad.
PAN AACCC2082P

Dy. Commissioner of Income Tax,
Circle 1(2), Hyderabad.

Appellant By : Shri Arpit Goyal.
Respondent By : Shri Kiran Kotta. (D.R.)
Date of Hearing : 17.08.2021.
Date of Pronouncement : 02.09.2021.
O R D E R

1. The assessee's sole substantive grievance raised in the instant appeal challenging the correctness of both the lower appellate action imposing 271AA penalty of Rs.28,88,150 on account of its alleged failure in non-reporting of the trade receivables as an international transaction u/s. 92D of the Act.

2.We have given our thoughtful consideration to rival pleadings against and in support of the impugned penalty and find no reason to sustain the same. We are admittedly in Assessment Year 2012-13. Learned departmental representative fails to dispute that the legislature had inserted Explanation to section 92B of the Act vide Finance Act, 2012 with retrospective effect from 1.4.2002.

3.This assessee's appeal is allowed.
Order pronounced in the open court on 2nd Sept., 2021.

Please find attached the enclosed file for the full judgement

FAQ :

The case concerned an alleged failure by the assessee to report trade receivables as an international transaction under Section 92D of the Income Tax Act, leading to a penalty.

The Income Tax Appellate Tribunal (ITAT) allowed the assessee's appeal and found no reason to sustain the penalty.

Section 92D of the Income Tax Act, which deals with the reporting of international transactions, was relevant to this case.

The Finance Act, 2012, inserted an Explanation to Section 92B of the Act with retrospective effect from 1 April 2002, which was a key factor in the tribunal's decision.

Attached File : 1442821_4418_1631178264_1179_hyd_2019_c3i_support_services_p_ltd.pdf

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Judgement posted by

Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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