2013 (4) TMI 640

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.... from the order of the CIT(A), Jalandhar, dated 29.12.2010 for the assessment year 2005-06. The assessee has raised following grounds of appeal: "1. That the order of the ld. CIT(A) sustaining the penalty under section 271(1)(c) levied by the AO is against law & facts of the case. 2. That on the facts & circumstances of the case the Ld. CIT(A) erred in upholding the penalty ignoring that the....

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....Rs.8,16,750/- from M/s. Naveen Toyota, Agra Mathura Road, Artni, Agra on 30th March, 2005 and had claimed depreciation on the said car amounting to Rs.81,675/-. When asked to justify the claim of depreciation, the assessee submitted before the AO that the car was purchased by it on 30th March, 2005 as per the sale invoice of the same date. It was also contended vide letter dated 05.11.2007 that th....

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....as submitted by the assessee before the AO that the depreciation was claimed under the genuine and bonafide belief that since the amount was paid and debited in the Profit & Loss account, hence the assessee was not liable for any penalty. The AO was not satisfied with the explanation noting that the assessee had claimed during the assessment proceedings that the car was used in the relevant previo....

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....ed that this depreciation had wrongly been claimed during the assessment proceedings as well as in the penalty proceedings. It is not a case that this mistake has been pointed out by the AO in the assessment proceedings. During the assessment proceedings, the assessee had voluntarily come forward and pointed out the mistake to rectify the same. The assessee was under the bonafide belief and has no....