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2014 (8) TMI 715 - ITAT DELHIPenalty u/s 271(1)(c) – Proper explanation to furnish the bona fide the claim made or not - Claim of carry forward of unabsorbed depreciation – Held that:- The contention of the assessee is accepted because though it is true that assessee could not commence the business but at the same time it cannot be ignored that from incorporation the intention of the assessee was for obtaining NSE membership and various formalities had to be fulfilled before application for registration could be made – Relying upon Whirlpool Of India Limited. Versus Joint Commissioner Of Income-tax [2007 (11) TMI 331 - ITAT DELHI-B] - the nature of business proposed to be undertaken was such that without complying with various requirements, the assessee could not make application for registration - The application could be made to SEBI only when the assessee had fulfilled/ complied with basic conditions necessary for grant of registration. There can be one point of view that the business had been set up after all the necessary formalities had been fulfilled for making the assessee eligible for filing the application with SEBI - Only the permission for commencement of business was awaited - The business was ready for commencement subject to grant of registration - it cannot be said that assessee’s explanation of claiming expenses for the period 25-4-2005 to 15-1-2006 could be branded as mala fide - The assessee having complied with all the requirements was sanguine of getting registration and therefore treated its business as being set up from the date of making application - the assessee’s intention since beginning was to act as member of NSE also has to be given due weightage - penalty is not leviable - the assessee having filed all the relevant information along with the return, it cannot be said that assessee had concealed particulars of its income to attract penalty u/s 271(1)(c) – Relying upon Reliance Petro Products Ltd. v. CIT [2010 (3) TMI 80 - SUPREME COURT] - Decided in favour of Assessee.
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