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2012 (8) TMI 270 - ITAT, MUMBAIPenalty u/s 271(1)(c) - expenditure claimed in relation to IPO issued many years ago dis-allowed on ground that company had been incorporated more than 10 years ago and claim made by the assessee was patently a wrong claim - Held that:- Case of penalty is to be evaluated under the provisions of Explanation -1 to section 271(1)(c) as per which, in case, in respect of any addition, the assessee offers Explanation which he is not able to substantiate and is also not able to prove that the Explanation is bonafide and all necessary details in relation to claim have been given, penalty is leviable. In this case, it has not been shown as to how claim can be made in this year u/s 35D or u/s 37 when the claim relates to issue of share capital which is of the nature of capital. Further, no material has been placed to substantiate the claim that it has been made on the basis of legal advice. Therefore, Explanation of the assessee on the facts of the case, in our view, cannot be considered as bonafide and penalty u/s 271(1)(c) is leviable - Decided against assessee
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