Dismissing the appeal, the Court held that the assessee, in its return filed, had mentioned that the matter was pending. Thereafter, it was followed up by filing an application for rectification, asking for exemption from the date the application was filed. Hence, the Tribunal had rightly come to the conclusion that the assessee was under a bona fide belief that its application for registration was likely to be allowed. The deletion of the penalty was justified. (AY. 2008-09, 2009-10)