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2016 (8) TMI 521 - HC - Income TaxPenalty under section 271(1)(c) - claim of capital expenditure - Held that:- he claims have been made by the assessee on the advice of the Chartered Accountant handling the work of the assessee company and that the claim is technically allowable as regards to scientific research and R & D expenses looking to the work of new product development undertaken by the assessee. All facts, including bills & list of parties from whom these capital assets were purchased, duly audited by the Chartered Accountant, were filed in the assessment proceedings and as per the opinion of the Chartered Accountant looking after the case, the assessee company had claimed the deduction on these two items. Thereafter, the Tribunal observed that the bona fide explanation offered by the assessee was negatived by the Assessing Officer and on that basis a return cannot be said to be false unless there is an element of deliberateness in it. The Tribunal, therefore, reversed the order of the Commissioner of Income-tax (Appeals) and cancelled the penalty. We are in complete agreement with the view taken by the Tribunal. The Tribunal has rightly reversed the order of the Commissioner of Income-tax (Appeals) and cancelled the penalty. - Decided in favour of assessee
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