TMI Blog2019 (3) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... ting of the Memorandum and Articles of Association; fees for registering the company and the provisions of the companies act 1956 (now companies act 2013) and expenditure in connection with the issue for public subscription etc are also permissible for claiming amortization in terms of the statutory limit. Admittedly in the facts the present case all necessary details were made available by the assessee the mere fact that the addition made in the course of assessment proceedings in the peculiar facts of the present case was not challenged in appeal by itself is neither here nor there. Satisfied by the explanation filed after giving our due consideration to the material available on record and the statutory provisions relying upon the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in the case of ACIT vs. Manjunatha Cotton. (2013) 359 ITR 565. 3. The Ld. Sr.D.R. Ms. R.Singh invited attention to the assessment order and the penalty order and submitted that the penalty on facts has been correctly levied. It was her submission that the assessee has failed to appear before the Assessing Officer in the penalty proceedings and it was also her argument that there is no specific ground assailing the levy of penalty on the grounds that the specific charge was not spelt out. Even otherwise it was her submission that the lapse if any is not fatal to the levy of penalty and in the eventuality decision is to be given on the basis of the said shortcoming, she would seek time to prepare as the said issue was not argued before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was his submission that the assessee has no role to play on the policies of the Ministry whether to pick all cases or some cases. The plea that miniscule cases are picked up cannot be a ground to hold that in all cases picked up if an addition is maintained penalty is automatically levied. Referring to the facts it was his submission that the assessee company had claimed the amount of ROC expenses in its Profit and Loss account which has been disallowed by the Assessing Officer holding it to be capital in nature. It was his submission that simply because the addition has been accepted by the assessee by itself does not invite penalty proceedings. Inviting attention to the record it was his submission that the assessee has declared an inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put forth by the assessee in regard to the ROC expenditure made under section 35 D was not allowed by the assessing officer. A perusal of the said provision shows that the said section contemplates granting proportional deduction of the preliminary expenses in the case of an Indian company or a person, the assessee is an Indian Company. A proportional deduction has been given a statutory recognition. The preliminary expenses permissible for amortization contemplated by the statute are for expenditure in connection with preparation of feasibility report; preparation of project report; conducting Mark market survey etc; legal charges for drafting any agreement; and in case the assessee is a company then the charges for drafting the Memorandu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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