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2013 (9) TMI 1080 - AT - Income TaxPenalty u/s. 271(1)(c) - Held that:- We are of the opinion that penalty u/s 271(1)(c) is not warranted. With reference to the club membership fee, Assessee paid an amount of ₹ 6 lakhs as membership fee. On the basis of decision of Jurisdictional High Court in the case of Otis Elevator Co. (India) Ltd. (1991 (4) TMI 53 - BOMBAY High Court ) assessee claimed the deduction at 1/4th of the amount at ₹ 1,50,000/- over a period of 4 years. In the assessment year 2005-06 it was disallowed. By that time assessee already has filed return for assessment year 2007-08. Therefore, there is a bona fide belief that the claim is allowable u/s 37(1). Further, assessee is in the business of import of steel. As part of that it seems, he spent an amount of ₹ 92,092/- as sales promotion and transport expenditure on Mr. John and claimed as business expenditure. AO treated it as personal expenditure. Just became a claim was made and AO made disallowance, the same may not lead to levy of penalty u/s. 271(1)(c). There is bona fide belief in making the claims - Decided in favour of assessee
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