2005 (4) TMI 11

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....ferred under section 256(1) of the Income-tax Act, 1961 ("the Act)", by the Income-tax Appellate Tribunal, Ahmedabad Bench "A", at the instance of the Commissioner of Income-tax, Rajkot: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in cancelling the penalty under section 271(1)(c)?" The assessment year is 1978-79 and the relevant accounting period is th....

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.... In second appeal filed before the Tribunal, the Tribunal vide its order dated March 26, 1992, deleted the penalty. Mrs. M.M. Bhatt, learned standing counsel for the applicant-Revenue, submitted that the Tribunal had erred in assigning various reasons on its own even though it was not the case of either side before it. She further submitted that the reasoning which weighed with the Commissioner....

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.... the assessment completed after disallowance of such extra allowance was completed at a nil figure. In the circumstances, the Tribunal has held that the assessee would not have benefited by claiming the higher depreciation by way of extra-shift allowance. Considering the scheme of the provisions, the Tribunal has held that depreciation is allowable only up to the cost of plant and machinery and no....

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....ersight. The Tribunal has further found that the statement of the assessee that the claim was due to oversight was not untrue. In the light of the aforesaid findings of fact recorded by the Tribunal, it is apparent that there is no infirmity in the impugned order of the Tribunal. The Tribunal has appreciated the facts of the case in the light of the statutory scheme for the purpose of allowing ....