2017 (6) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the Income-tax Act, 1961 (in short "the Act"). The grounds of appeal raised by the Revenue are as under: "The DCIT, Circle - 3(1), New Delhi is hereby directed to file appeal in the above mentioned case before the ITAT, New Delhi on the following ground of appeal. 1) Whether on the facts and in circumstances of the case, the learned CIT(A) has erred in deleting the penalty amounting to Rs. 15,14,62,400 imposed u/s 271(1)(c) when the use falls squarely within the ambit of Explanation 4 of Section 271(1)(c). The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 2. The facts in brief of the case are that the assess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the penalty on the ground that income in the assessment order has been finally computed on the basis of 'book profit' under section 115JB of the Act and, therefore, no penalty under section 271(1)(c) of the Act could be levied on the additions made under normal provisions of the Act. Aggrieved, the Revenue is in appeal before the Tribunal raising the grounds as reproduced above. 4. In the solitary ground, the Revenue has challenged deletion of penalty levied under section 271(1)(c) of the Act on the ground that same falls squarely within the ambit of Explanation-4 of section 271(1)(c) of the Act. 5. Before us, supporting the order of the Assessing Officer, the Ld. CIT(DR) submitted that the assessee was entitled for depreciation @ o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see for statistical purposes. In the said appeal, the grounds of appeal raised by the assessee are reproduced as under: "2. Depreciation on energy meters wrongly allowed at 15% as against 80% resulting in a disallowance of Rs. 48,13,62,420. The Ld. CIT (A) - VII has wrongly upheld that the "Energy Meters" are eligible for depreciation @ 15 % as against the claims @ 80 %. In this regard he has ignored the facts that these meters are for measuring electric energy which has been specifically mentioned as eligible for 80% depreciation in the depreciation schedule of the Income Tax Rules, 1962. Further these meters also have the characteristics of energy saving devices which are subject to depreciation @ 80%. In view of the above, depre....