The Tax Publishers2020 TaxPub(DT) 4824 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Declining of claim of depreciation of assessee nowhere comes within the ambit of levy the penalty under section 271(1)(c), especially when in case of Fastway Transmission P. Ltd., depreciation on set top box (STB) had been held justifiable @ 60%. Merely because rate of depreciation was not acceptable to AO that by itself could not attract penalty under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Declining of claim of depreciation of assessee -

Assessee claimed the depreciation @ 60% on control room equipment and digital set top box. AO declined assessee's claim and restricted reproduction to the extent of 15%. Also AO levied penalty under section 271(1)(c). Assessee challenged penalty levied by AO.Held: Declining of claim of depreciation of assessee nowhere comes within the ambit of levy the penalty under section 271(1)(c) especially when in case of Fastway Transmission P. Ltd., depreciation on set top box (STB) had been held justifiable @ 60%. Merely because rate of depreciation was not acceptable to AO, that by itself could not attract penalty under section 271(1)(c).

Relied:CIT v. CIT v. Reliance Petro Products, (2010) 322 ITR 158 (SC).

REFERRED : Fastway Transmission Pvt. Ltd., in ITA No. 547/chd./2017 dt. 6-5-2020.

FAVOUR : In assessee's favour.

A.Y. : 2011-12 & 2014-15

IN THE ITAT, MUMBAI BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT