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2015 (3) TMI 1199 - ITAT DELHIPenalty u/s 271(1)(c) - Additional Depreciation and of Exemption u/s 10B - Held that:- The matter has been restored to the file of the AO to determine the same afresh in accordance with law as per the directions of the Tribunal and the matter is still pending before the AO. In these facts, we cancel the penalty levied u/s 271(1)(c) of the Act on these two items of disallowance Disallowance of Guarantee Commission of Directors, the Tribunal has already allowed the miscellaneous application preferred by the assessee and has allowed deduction of Guarantee Commission paid to the Directors and their remain no basis for levy of penalty u/s 271(1)(c) of the Act on this issue and the same is accordingly cancelled. Disallowance of Repair and Maintenance Expenses and disallowance out of Foreign Travelling Expenses - The issue that whether Repairs and Maintenance in respect of leased buildings was revenue or capital in nature or whether the part of the Foreign Travelling Expenses were for the business purposes of the assessee is clearly debatable in nature. This is a case where the assessee has disclosed all the material facts necessary for assessment at the time of filing of the return itself. The conduct of the assessee in this case was bonafide. In these facts of the case, we are of the view that it is not a fit case for levy of penalty u/s 271(1)(c) of the Act on these two items of disallowances made by the AO and accordingly the penalty levied u/s 271(1)(c) of the Act on disallowance of Repair and Maintenance Expenses and out of Foreign Travelling Expenses is cancelled. - Decided in favour of assessee
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