2012 (7) TMI 289

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....lty u/s. 271(1)(c) levied by the A.O. on the addition of additional depreciation".   3. Brief facts of the case are that assessee filed its return of income on 30-10-2005 declaring total income at Rs.1,61,86,160/-.Thereafter the case was selected for scrutiny and the assessment was completed u/s. 143(3) of the Act on 17-12-2007 determining the total income at Rs. 1,87,91,250/- after making two additions (1) disallowance of additional depreciation amounting to Rs.18,42,527/-, (2) disallowance of interest expenses of Rs. 7,62,565/-. Against these two additions the assessee carried the matter in appeal before the CIT (A) as well as before the Tribunal. 4. The Tribunal in quantum appeal for these two additions vide order dated 25-2-2....

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....e installed capacity was increased in excess of 10%. No evidence was produced even at the time of penalty proceedings. Ld. D.R. pointed out to the fact that the Directors' Report states that installed capacity of current year and previous year are not ascertainable. It is therefore clear that the installed capacity were not ascertainable was known to Director. Despite that the act of assessee claiming additional depreciation by claiming an increased installed capacity clearly shows a willful intent on the part of assessee to make a false claim and thereby reduce the tax liability. It was thus submitted that the assessee has furnished inaccurate particulars of income and concealed the particulars of income. It also relied on the decision of ....

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.... and machinery on which it claimed additional depreciation. This fact is not controverted by Revenue nor has it brought on record any material to prove that assessee had not purchased machinery. The assessee's claim of additional depreciation was based on the certificate of the Auditor wherein it was certified that the installed capacity has increased by more than 10%. In the case of Madhu Industries (supra), the claim of additional depreciation was allowed by the co-ordinate Bench based on the Chartered Accountant's Certificate which implies that the issue is debatable and two opinions are possible. The assessee was under a bonafide belief that it is eligible for deduction and accordingly it claimed the deduction. 9. In the case of CIT ....