Court upholds penalty for claiming land depreciation under Income Tax Act

The Delhi High Court dismissed the appeal challenging the penalty imposed for claiming depreciation on land at 10% under Section 260A of the Income Tax Act, 1961. The Court held that depreciation on land cannot be claimed as per established principles and found that the appellant failed to discharge the onus under Section 271(1)(c) of the Act. Consequently, the Court declined to interfere with the decision and upheld the penalty, ultimately dismissing the appeal.

---

---

Issues involved: Appeal against levy of penalty for claiming depreciation on land at 10% under Section 260A of the Income Tax Act, 1961.

Summary:
The High Court of Delhi dismissed the appeal challenging the penalty imposed by the Assessing Officer for claiming depreciation on land at 10%. The appellant argued that the claim was a bona fide error and should not result in a penalty. However, the Court held that depreciation on land cannot be claimed as per established principles. The appellant did not revise the return even in the subsequent assessment year, indicating a lack of bona fide mistake. The Tribunal found that the appellant failed to discharge the onus under Section 271(1)(c) of the Act. Based on the Tribunal's reasoning and factual analysis, the Court declined to interfere with the decision and upheld the penalty.

In conclusion, the appeal was dismissed by the Delhi High Court.

---