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TMI Blog2023 (9) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961 (in short 'the Act'). 2. We heard the parties and perused the record. The assessee has raised grounds on legal issues and also on merits. We prefer to adjudicate the grounds urged on merits. The assessee is engaged in business of developing online and offline games softwares in its 100% export oriented STPI unit. The assessment of the year under consideration was completed by the Assessing Officer under Section 143(3) of the Act on 31.12.2013, wherein he made following three additions :- Issue Disallowance as per order u/s 143(3) 1 Disallowance of claim of deduction u/s 10A Rs. 53,17,433/- 2 Disallowance u/s 40(a)(ia) Rs. 53,90,600/- 3 Disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture in the Profit & Loss Account, but has been claimed only in computation of total income. Since this deduction is allowed as an incentive to promote exports, the Hon'ble Delhi High Court in the case of ACIT vs BSL Software Ltd., (2012) 20 taxmann.com 408 has held that where claim for deduction was made under Section 10A of the Act on the basis of certificate of Accountant which was bona fide and the required facts relating thereto were furnished, then assessee could not be held to be liable for penalty. Accordingly, we are of the view that the Assessing Officer was not justified in levying penalty under Section 271(1)(c) of the Act on the disallowance of claim of deduction under Section 10A of the Act. 4. The next disallowance on whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision rendered by co-ordinate bench of the Tribunal in the case of Tanushree Basu vs ACIT, ITA No. 2922/Mum/2012 dated 22.05.2013. Accordingly, we hold that the Assessing Officer was not justified in levying penalty on this disallowance. 6. The last addition on which penalty was levied relates to disallowance of expenditure of Rs. 5,84,698/- claimed by assessee holding the same as 'capital expenditure'. The Assessing Officer noticed that the assessee has incurred a sum of Rs. 5,84,698/- for increasing its Share Capital and claimed same as 'Revenue expenditure'. The Assessing Officer treated the same as 'Capital expenditure' by placing reliance on the judgment rendered by the Hon'ble Supreme Court of India in the case of Brooke Bond India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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