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2019 (3) TMI 728 - AT - Income TaxPenalty u/s 271(1)(c) - Disclosure of relevant facts - 1/5th ROC expenditure allowable u/s 35D - notice not scored off the specific charge - HELD THAT:- A proportional deduction has been given a statutory recognition. The preliminary expenses permissible for amortization contemplated by the statute are for expenditure in connection with preparation of feasibility report; preparation of project report; conducting Mark market survey etc; legal charges for drafting any agreement; and in case the assessee is a company then the charges for drafting the Memorandum and Articles of Association of the company; printing of the Memorandum and Articles of Association; fees for registering the company and the provisions of the companies act 1956 (now companies act 2013) and expenditure in connection with the issue for public subscription etc are also permissible for claiming amortization in terms of the statutory limit. Admittedly in the facts the present case all necessary details were made available by the assessee the mere fact that the addition made in the course of assessment proceedings in the peculiar facts of the present case was not challenged in appeal by itself is neither here nor there. Satisfied by the explanation filed after giving our due consideration to the material available on record and the statutory provisions relying upon the proposition of law as laid down by the Apex court in the case of Reliance Petro products private limited [2010 (3) TMI 80 - SUPREME COURT] the impugned order is set aside and the penalty is directed to be quashed - Decided in favour of assessee.
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