The Tax Publishers2019 TaxPub(DT) 1318 (Del-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

The issue of rate of depreciation on website development cost being debatable in nature, there could not be any basis for levy of penalty under section 271(1)(c), especially when AO could not make out any case that assessee had furnished. Inaccurate particulars of income.

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Levy as regards debatable issue -

Assessee claimed depreciation @ 60% on website development cost. AO allowed depreciation 25%. Along with addition made on account of excess depreciation claimed on website development cost, AO levied penalty under section 271(1)(c). Held:The issue of rate of depreciation on website development cost being debatable in nature, there could not be any basis for levy of penalty under section 271(1)(c) especially when AO could not make out any case that assessee had furnished. Inaccurate particulars of income.

REFERRED : Amway India Enterprise (2008) 114 TTJ 476 (Del-Trib) (SB) : 2008 TaxPub(DT) 1656 (Del-Trib).

FAVOUR : In assessee's favour.

A.Y. : 2009-10


INCOME TAX ACT, 1961

Section 271(1)(c)

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