2022 (11) TMI 889 - AT - Income Tax
Penalty u/s 271(1)(c) - treating capital expenditure as revenue expenditure in the absence of any revenue recognition - allegation of filing of inaccurate particulars of income - HELD THAT:- We observe that assessee has substantiated in its explanation that there was bonafide reason to claim the aforesaid expenditure as revenue expenditure. The assessee also explained that similar expenses were also booked for assessment years 2009-10 to 2014-15 which were accepted under section 143(1) of the Act.
We consider that the assessee demonstrated that it had acted bonfidely on the basis of guidance notes of the ICAI and on the basis of accounting of such expenses in the earlier years, etc. Therefore, we find the decision of the Ld.CIT(A) in sustaining the penalty is not justified. Accordingly, we direct the Assessing Officer to delete the penalty levied.