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2020 (11) TMI 449 - AT - Income TaxPenalty u/s 271(1)(c) - characterisation of expenses - treating the purchase of software as capital expenditure by the assessee whereas as per revenue it is a revenue expenditure - HELD THAT:- We notice that assessee has purchased software at the cost of ₹ 39 lakhs and claimed the same as revenue expenditure. At the time of assessment proceedings, assessing officer brought to the knowledge of the assessee that it is a depreciable asset and as per income tax rules assessee can claim only depreciation @ 60%. The assessee also confirmed that it has claimed the above expenditure inadvertently. As relying on M/S TORQUE PHARMACEUTICALS (P) LTD., [2015 (5) TMI 1146 - ITAT CHANDIGARH] the assessee made a bonafide claim of deduction of the expenditure even though it was not acceptable to the revenue, would not lead to inference that assessee has concealed the particulars of income or filed inaccurate particulars of income. Nothing is brought on record if claim of assessee was incorrect in law or was malafide. Penalty deleted - Decided in favour of assessee.
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