TMI Blog2020 (11) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... ure 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. - I.T.A. No. 5882/Mum/2009 And I.T.A. No. 5873/Mum/2009 - - - Dated:- 16-7-2020 - Shri Pawan Singh, JM And Shri S. Rifaur Rahman, AM For the Appellant : Shri Yogesh Thar, Shri Chaitanya Joshi, and Shri Hardik Niral, AR For the Respondent : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsal of provisions in the books of accounts in computing book profit under section 115JB. The other issues on which penalty levied were deleted by the Ld CIT(A) and on which revenue/assessee are not in appeal. The revenue is in appeal only on reversal of provision in computing the book profit on which Ld CIT(A) has deleted the penalty. Similarly, the Ld CIT(A) has confirmed the penalty on treating the purchase of software as capital expenditure by the assessee and subsequently accepted during assessment proceedings. On which the AO levied the penalty. 4. At the time of hearing, learned AR brought to our notice that the revenue is in appeal on the deletion of penalty levied on reversal of provision in arriving the book profit to the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure as a revenue inadvertently, the assessing officer initiated the penalty proceedings and levied the penalty. Aggrieved with the above levy of penalty, assessee preferred an appeal before Ld CIT(A) and Ld CIT(A) sustained the levy of penalty. Aggrieved with the above order, assessee is in appeal. 6. At the time of hearing, learned AR brought to notice the penalty order and submitted that assessee has claimed in advertently the cost of software and he submitted that assessee itself disclosed in its tax audit report and submitted that the claim of software purchase he is an debatable issue. Further he submitted that the notice issued by the assessing officer is defective and there is no concealment of any information since assessee has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and material available on record. The issue involved in the appeal is regarding cancellation of penalty on addition made on account of disallowance of expenditure under section 40(a)(ia) of the Act. The assessee has disclosed the entire facts before the authorities below without concealing any income. The assessee made a claim of deduction in the return of income and explained the facts but the same were not accepted by the 6 authorities below and additions have been confirmed. Therefore, it is a case of mere disallowance of expenditure without bringing any adequate material against assessee to prove that assessee has concealed the particulars of income or has furnished inaccurate particulars of income. The appeal of the assessee on substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing is brought on record if claim of assessee was incorrect in law or was malafide. 7 Therefore, decision relied upon by ld. DR is not applicable to the facts of the case. 10. Considering the above discussion, in the light of the findings of the ld. CIT(Appeals), we do not find any justification to interfere with the order of the ld. CIT(Appeals) in canceling the penalty. 9. The above issue is ipso facto similar to the facts in the present appeal. Therefore, respectfully following the above findings, we are inclined to delete the penalty levied in this case. Accordingly ground raised by the assessee is allowed. 10. In the result appeal filed by the assessee is allowed and appeal filed by the revenue is dismissed. 11 Order pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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