200% Tax Penalty Overruled; No Under-Reported Income Found, Double Deduction Claim Dismissed, Favoring Assessee.

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....Penalty levied u/s 274 read with Section 270A - assessee computed tax on disallowed depreciation amount at maximum marginal rate and levied 200% penalty on payable tax - held, Assessing Officer (AO) contradicted himself by levying penalty while framing assessment with Nil income despite depreciation disallowance. AO resorted to compute notional tax on disallowance where no tax payable by assessee. Assessee did not under-report income as per Section 270A(2). Section 270A(7) refers to penalty on under-reported income tax. No tax payable as assessee spent over 85% of revenue. Commissioner of Income Tax (Appeals) rightly deleted penalty. Revision u/s 263 - Commissioner of Income Tax (CIT) claimed AO did not disallow depreciation claim, amountin.........