2002 (11) TMI 235

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....-4-2002 vide which the Commissioner (Appeals) has allowed them Modvat credit by reversing the order-in-original, but had upheld the imposition of penalty of Rs. 1 lakh on them under Rule 173Q of the Rules. The appellants availed Modvat credit of Rs. 5,18,138/- on the capital goods during the period 97-98 and 98-99. They also claimed depreciation of the said amount under Section 32 of the Income-ta....

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....) RLT 1079] wherein it has been observed that Modvat credit which was legally admissible to an assessee, could not be disallowed on the ground that he had claimed depreciation of the amount in his Income- tax Returns also. 3. The Commissioner (Appeals), however, has upheld penalty of Rs. l lakh on the appellants under Rule 173Q for contravention of Rule 57R(8) of the Rules. But in my view, the pe....