https://www.taxtmi.com/caselaws?id=366887 Penalty under section 271(1)(c) is not attracted where the assessee disclosed the depreciation claim and all primary facts, including the government capital contribution, and made the claim under a bona fide legal belief. Although depreciation was disallowed on merits under section 43(1) read with Explanation 10, the mere rejection of the claim did not establish concealment of income or furnishing of inaccurate particulars. The decision treats assessment and penalty proceedings as distinct and holds that a wrong legal claim, without suppression of facts or dishonest particulars, does not justify penalty. en-us Fri, 07 Sep 2018 00:00:00 +0530 Wed, 12 Sep 2018 12:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=366887 Penalty under section 271(1)(c) is not attracted where the assessee disclosed the depreciation claim and all primary facts, including the government capital contribution, and made the claim under a bona fide legal belief. Although depreciation was disallowed on merits under section 43(1) read with Explanation 10, the mere rejection of the claim did not establish concealment of income or furnishing of inaccurate particulars. The decision treats assessment and penalty proceedings as distinct and holds that a wrong legal claim, without suppression of facts or dishonest particulars, does not justify penalty. Case-Laws Income Tax Fri, 07 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=366887