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2013 (7) TMI 411 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of repairs and maintenance expenses treating the same as capital in nature - Held that:- The action of the A.O. in allowing the depreciation on the said expenses clearly shows that genuineness of the same was not disputed by him and the fact that the said expenses were related to the business of the assessee was also accepted by him. In the similar facts and circumstances involved in the case of DCIT vs. Shivalik Global Ltd. (2009 (12) TMI 695 - ITAT DELHI) wherein the penalty imposed by the A.O. deleted holding that penalty u/s 271(1)(c) was not justifiable because the issue as to whether the particular repair expenses are of revenue nature or of capital nature was highly debatable one and there was no case of furnishing of inaccurate particulars of income by the assessee in treating repair expenses to be of revenue in nature. Penalty deleted.In favour of assessee. Disallowance out of miscellaneous expenses to the extent of 10% for want of supporting voucher - Held that:- Adhoc disallowance of 50% out of miscellaneous expenses was made by the A.O. on estimated basis and the said estimate was revised by the CIT(A) while restricting the disallowance to 10%. It was thus a case of disallowance made on estimated basis for want of supporting voucher and there was no case that any bogus expenses not relating to its business were claimed by the assessee under the head miscellaneous expenses. See DCIT vs. Eagle Iron and Metal Industries Ltd. (2009 (12) TMI 696 - ITAT MUMBAI) wherein held that where disallowance had been made purely on the basis of difference of opinion and on adhoc basis, there was no case made out for concealment of income or furnishing inaccurate particulars of income to justify imposition of penalty u/s 271(1)(c) - In favour of assessee.
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