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2013 (7) TMI 354 - ITAT MUMBAIPenalty u/s 271(1)(c) - Interest paid to bank disallowed under Section 43B - Held that:- Assessee has duly disclosed the particulars of interest payable in the balance-sheet, however, it could not disallow the interest payable at the time of computation of income as this was the first year in which such a claim was to be disallowed in view of Section 43B. Under these circumstances it can be held that there was a genuine inadvertent mistake by the tax consultants in this case. The ratio laid down in the case of Price Waterhouse Coopers Pvt. Ltd vs. CIT & another (2012 (9) TMI 775 - SUPREME COURT) wherein concluded that if there is a bonafide and inadvertent mistake by the assessee while submitting the income in the return, it cannot be held that assessee was guilty of either furnishing inaccurate particulars of income or concealment of his income. Thus, no penalty can be levied on such bonafide mistake and accordingly the same is deleted. In favour of assessee. Disallowance of depreciation on BSE membership rights - Held that:- As decided in Techno Shares and Stock Ltd. case (2010 (9) TMI 6 - SUPREME COURT OF INDIA) BSE Card is an intangible asset entitled for depreciation if the card has been acquired after 01.04.1998. In this case, the assessee has acquired the card on 31st December, 1997 i.e. three months prior to it. In such a situation, it cannot be held that the assessee's claim for depreciation of BSE Card was bogus or non-genuine. Moreover, it is purely and legal issue that depreciation would be allowable on the card which has been purchased after 01.04.1998 and would be disallowed if it has been purchased slightly prior to this date. Therefore, such a claim cannot be held to be purely not bonafide. Thus, such a disallowance does not warrant any penalty for concealment of income or for furnishing of inaccurate particulars - penalty levied on this score also stands deleted. In favour of assessee.
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