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2017 (12) TMI 1522 - AT - Income TaxPenalty proceedings u/s 271(1)(c) - disallowance of depreciation on the amount of entertainment subsidy and disallowed on account of ESOP expenditure - Held that:- As far as penalty on addition in respect of entertainment subsidy is concerned, the ITAT has deleted the entire quantum in the quantum appeal and thus, we agree with the Ld. CIT(A) that no penalty is leviable on the same as quantum addition itself has been deleted. Disallowance on account of ESOP expenditure - Held that:- It is undisputed that accounts of the assessee were duly audited, tax audit report, computation of income and income tax return were not at variance and relevant details were filed by the assessee during the course of assessment proceedings against which the Assessing Officer has not made any adverse observation. It is also undisputed that the amount of expenditure claimed on ESOP was duly reflected in the P&L account and also in the notes to accounts. Therefore, we are of the considered opinion that penalty will not be leviable on this issue as mere making of a claim, which is not otherwise acceptable in law, will not tantamount to concealment of income or furnishing inaccurate particulars, especially when the bona fides of the assessee are not under doubt. - Decided in favour of assessee.
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