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2018 (9) TMI 966 - ITAT DELHIPenalty u/s 271(1)(c) - expenditure of webhosting and misc. expenditure for website development - Held that:- when the assessee has come up with bonafide claim, even if it is not accepted, it would not per se tantamount to furnishing inaccurate particulars so as to attract the penalty proceedings u/s 271(1)(c) Furthermore, Incurring of ₹ 37,52,700/- by the assessee on share capital have also been duly explained by the assessee by debiting the same under head ‘legal and professional charges’. Assessee has suo-moto disallowed an amount of ₹ 7,00,000/- relating to increase in capital and RS.5,00,000/- pertaining to filing fees and ₹ 2,00,000/- on account of stamp duty in computation of income debited under the head rent, rates and taxes. All these facts go to prove that the assessee has come up with bonafide claim and even if the same is proved to be wrong, it cannot attract the provisions contained u/s 271 (1)(c) of the Act. AO/CIT (A) have erred in levying/ enhancing the penalty which is not sustainable in the eyes of law, hence ordered to be deleted. Consequently, appeal filed by the assessee is hereby allowed.
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