https://www.taxtmi.com/caselaws?id=310444 The ITAT Jaipur deleted penalty u/s 271(1)(c) imposed on assessee for claiming share capital increase expenses as revenue expenditure. The assessee had increased authorized capital from Rs. 9 crores to Rs. 11 crores as required by bank for enhanced working capital limits. Though the AO disallowed the expenses treating them as capital expenditure, the Tribunal found the assessee's explanation bonafide and supported by bank sanction letter. The Tribunal held that mere disallowance of expenditure cannot justify penalty when the claim was made with bonafide belief, citing JKP Auto parts precedent. en-us Fri, 23 Feb 2018 00:00:00 +0530 Thu, 26 Oct 2023 07:43:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310444 The ITAT Jaipur deleted penalty u/s 271(1)(c) imposed on assessee for claiming share capital increase expenses as revenue expenditure. The assessee had increased authorized capital from Rs. 9 crores to Rs. 11 crores as required by bank for enhanced working capital limits. Though the AO disallowed the expenses treating them as capital expenditure, the Tribunal found the assessee's explanation bonafide and supported by bank sanction letter. The Tribunal held that mere disallowance of expenditure cannot justify penalty when the claim was made with bonafide belief, citing JKP Auto parts precedent. Case-Laws Income Tax Fri, 23 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310444