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2018 (5) TMI 898 - AT - Income TaxPenalty u/s 271(1)(c) - expenditure claimed in relation to development of basic designs for its train control systems as Revenue outgo - Held that:- Assessing Officer has clearly specified in para 3.1 of the assessment order that the expenditure resulted in intangible assets. It may be true the intangible asset might have been eligible for depreciation only at the rate of 25% if it was considered in the same class as of patents. However, we cannot say that any inaccurate particulars were filed by the assessee. Assessee had also given reasonable explanation for its failure to produce the bills in support of its explanation. Inability to produce the bills in support of expenditure would not by itself mean that claim was not an unlawful one. There is no adverse comment of the Statutory Auditors of the assessee company, pointed out by AO. Just because assessee preferred a claim which was not found acceptable by the AO, would not mean that claim was not a bonafide or was based on inaccurate particulars. CIT (Appeals) in our opinion had rightly relied on the judgment of Hon’ble Apex Court judgment in the case of Reliance Petro Products Ltd (2010 (3) TMI 80 - SUPREME COURT ) - Decided in favour of assessee.
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