2012 (5) TMI 660

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....YAL, AM: This appeal by the Revenue is directed against the order passed by the ld. CIT(A)-7, Mumbai, on 13-04-2010 deleting penalty of Rs. 6,99,112/- imposed by the AO u/s. 271(1)(c) of Income-tax Act, 1961, in relation to assessment year 2004-05. 2. Briefly stated, the facts of the case are that the assessee wrote off a sum of Rs. 19,48,743/- in its books of account towards Cafeteria expen....

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....ons and perused the relevant material on record. It is observed that the assessee capitalized the expenses in relation to Cafeteria project as capital work in progress in earlier year. Such project did not take off and eventually the assessee claimed it as a business loss in the current year. It is clearly borne out from records that the assessee claimed deduction by disclosing complete particular....