2025 (1) TMI 280

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 03.03.2015. The assessee has raised the following grounds of appeal:- "1. The Ld. AO has erred in levying penalty and Ld. CIT(A) has erred in confirming the penalty u/s 271(1)(c) of the I.T. Act. 2. The appellant reserves the right to add, alter, amend or withdraw any grounds of appeal." 2. Rival submission of both the parties heard and record perused. The Ld. Authorized Representative (Ld.AR) of the assessee submits that assessment for AY 2006-07 was completed under section 143(3) r.w.s 147 of the Act on 31.10.2011. The Assessing Officer while passing the assessment order made two partial disallowances on the issue of depreciation - first was related to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ot be said to be intentional. In the subsequent year, the assessee has shown net total of Rs. 11.42 crores. Thus, assessee has not availed special benefit by claiming additional depreciation in the current year instead of claiming for subsequent year. In fact, it was unintentional mistake. Second disallowance was on account of depreciation claimed in improvement in the leasehold property. The assessee claimed 20% of depreciation on the leasehold improvement by amortizing @ 20% for five years and no penalty is leviable on such issue. The Ld. AR of the assessee relied on various decisions of Hon'ble High Court and Tribunal on the ratio that no penalty under section 271(1)(c) is leviable, if full facts are disclosed relating to the expenditure....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... depreciation of Rs. 7,32,078/-. The Assessing Officer further noted that assessee has claimed depreciation on leasehold improvement @ 20% instead of @ 15%, the Assessing Officer worked out excess depreciation of Rs. 4,92,431/-. The Assessing Officer initiated penalty on both disallowances on issuing shown cause notice to the assessee before levying penalty. The Assessing Officer noted that no reply was furnished by assessee. The Assessing Officer held that the assessee furnished inaccurate particulars of its particulars which leads to concealment of income and levied penalty @ 100% of tax sought to be evaded on both disallowances. The Assessing Officer worked out both penalties of Rs. 4,12,170/- in his order dated 03.03.2015. The ld. CIT(A....