TaxTMI 
TaxTMI 
2011 (8) TMI 8
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....f the Tribunal, the present appeal is preferred by the Revenue. 2. We may first give the narration of the facts which have led to the imposition of penalty on the assessee. The case pertains to the assessment year 2001-02 for which year the respondent/assessee had filed its return declaring loss at Rs.93,74,724/-. During the assessment proceedings, the Assessing Officer noticed that the assessee had claimed the following deduction/expenditure:- (i) the fee of Rs. 1.59 lacs paid to the Registrar of Companies (ROC) for increasing authorized capital as revenue expenditure, treating the same as revenue expenditure, the Assessing Officer disallowed the same following the judgment of Supreme Court in 225 ITR 792. (ii) The a....
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....ion of 40% on tippers and excavators and since it had itself revised the computation, it was a bona fide error. The Assessing Officer took the view that the assessee revised its computation only when the wrong claim of depreciation was discovered by the AO, that too, when it could be discovered after proper enquiry and scrutiny of the details. The Assessing Officer further recorded in his order that only when the assessee was confronted with the facts and specifics queries were raised vide orders dated 31st March, 2004 that the assessee accepted the position and revised the claim and, therefore it was clearly a case of furnishing of inaccurate particulars for the claim of excessive depreciation. 4. The Assessing Officer also held ....
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....e penalty has been deleted on the ground that explanation given by the assessee could not be called mala fide and no particulars were concealed in this behalf. The Tribunal accepted the explanation of the assessee that it was claimed as revenue expenditure by placing reliance on several judicial pronouncements, and therefore, the claim was not mala fide. 8. Likewise, regarding the claim for depreciation, according to the Tribunal, it was a case of bona fide mistake as the assessee had claimed depreciation treating the earth moving equipment to be one block assets consisting of tippers and excavators and claiming depreciation @ 40% on the entire block of earth moving equipment. When the assessee found, during the course of assessme....
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....rofit and loss account under the aforesaid head. The cost on tippers was much higher on which depreciation was rightly claimed at 40%. However, since the entire block consisting of excavators and tippers was taken under the head 'earth moving equipment', the explanation given by the assessee was that inadvertently, in respect of excavators are the depreciation was claimed at 40% instead of 25%. This explanation has been accepted as genuine and bona fide by the Tribunal which is the final fact finding authority. In CIT Vs. Escorts Finance Ltd. (2010) 328 ITR 44 this Court has held that deletion of penalty on the ground of inadvertent error is a finding of fact. Infact, the Assessing Officer did not even contradict the plea of the assessee th....