TMI Blog2015 (10) TMI 2055X X X X Extracts X X X X X X X X Extracts X X X X ..... o its profit and loss account, but it did not add back - Held that:- First one of them falling under Section 94(7) is more or less an error of computation. The second one relates to treatment of software expenditure as 'capital' in nature' instead of revenue as claimed. We deem it appropriate to observe that this is a highly debatable issue of perennial nature. Therefore, the assessee cannot be he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n And T Mathivanan, JJ. For the Petitioner : Mr. T Ravikumar For the Respondent : None JUDGMENT Judgment was delivered by V. Ramasubramanian,J This appeal is by the Revenue, questioning the wisdom of the Tribunal in deleting the penalty under Section 271(1)(c) of the Act by raising the following substantial questions of law : i. Whether on the facts and circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated to the issue of incidental expenditure, which was found to be not supported by proof. The fourth related to interest on income tax. The assessee has duly debited the amount to its profit and loss account, but it did not add back. 4. The Assessing Officer levied penalty on all the four items upto 100%. The Commissioner (Appeals) confirmed the same. But, the Tribunal ordered deletion of pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this very amount to its profit and loss account but did not add back. We quote case law of Price Water Coopers P. Ltd. Vs. C.I.T. [(2012) 348 ITR 306 (SC), in identical circumstances and hold that this cannot be held to be an instance of concealment and furnishing of inaccurate particulars of income inviting penalty under Section 271(1)(c) of the Act. Therefore, the impugned penalty of ₹ 11, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 260-A, all that we are obliged to see is as to whether such a satisfaction was properly arrived at by the Tribunal or not. The Tribunal has given cogent reasons, which we have extracted above, to come to the conclusion that the penalty under Section 271(1)(c) was liable to be deleted. 7. As a matter of fact, in respect of each of the items in dispute, the Tribunal has given cogent r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
