2011 (6) TMI 876

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.... PANDA, A.M. This appeal filed by the Revenue is directed against the order dated 29.05.2007 passed by the CIT(A)-II, Cochin relating to assessment year 2001-02. 2. The Revenue in the grounds of appeal has challenged the order of the Ld. CIT(A) in cancelling the penalty of ₹ 2,15,24,700/- levied by the AO u/s. 271(1)(c) of the I.T. Act. 3. Facts of the case, in brief, are that the assess....

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.... appeal before us. 4. We have considered the rival arguments made by both the sides, perused the orders of the authorities below and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. The major addition of ₹ 4,35,45,000/- on which penalty has been levied by the AO is on account of Relatable interest on tax free investments disallow....

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....8377; 5,00,000/- being the Difference in depreciation added back is concerned, we find merit in the submission of the Ld. Counsel of the assessee that the addition was due to non application by mind by the AO. A perusal of the assessment order and the printed audited accounts (a copy of which is placed at pg. no. 42 of the paper book) show the Provisions of depreciation in Investment at ₹ 69....

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....l in assessee's own case has discussed the issue for the A.Y.'s 1995- 96 to 1997-98 and the appeal filed by the assessee on this issue has been dismissed. However such order of the Tribunal is dated 19.03.2004 and the assessee in the impugned case has filed its return of income much earlier. The assessee all along was claiming the same in the return of the income and full disclosures were there. F....