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2013 (1) TMI 186 - HC - Income TaxPenalty u/s 271(1)(c) - ITAT deleted the levy as no justification for the revenue authorities to conclude that the assessee’s conduct was malafide in claiming the expenditure towards renovation and other repairs which was ultimately disallowed - Held that:- One cannot be unmindful of the fact that the expenditure was primarily incurred by ITDC and at the stage when the return was filed the assessee could not undoubtedly produce the vouchers since the expenditure had been incurred by ITDC. But even eventually the assessing officer disallowed the claim only on the ground that it was capital in nature, and did not doubt the genuineness of the expenditure. The question whether an expenditure is capital or revenue is a debatable one, on which more than one view is possible. Having regard to these facts and decisions relied upon by the ITAT in CIT Vs. Reliance Petroproducts [2010 (3) TMI 80 - SUPREME COURT] & CIT Vs. Zoom Communication Pvt. Ltd [2010 (5) TMI 34 - DELHI HIGH COURT] wherein held that mere submitting a claim which is incorrect in law would not amount to giving inaccurate particulars of the income of the assessee - no infirmity in the reasons of the order of ITAT - in favour of assessee.
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