Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 97 - ITAT, CHENNAILevy of penalty u/s 271(1)(c) - AO stated that assessee had claimed depreciation at 100% on special grade steel rolls purchased by it and such castings were leased by the assessee to one - the lease transactions were not genuine, but was only a sham arrangement for providing finance and claiming depreciation - Held that:- As per the lease deed it was clear that the lessor was to purchase equipments selected by the lessee from the supplier chosen by the lessee. According to him, the lessees concerned selected suppliers and based on such selection, assessee had purchased items from the suppliers - The lessor is not a manufacturer nor a dealer and the equipment was to be selected and examined by lessee, the equipment was to be received by the lessee directly from the supplier. In such a situation, assessee cannot fault the assessee if it had believed the documents furnished by the lessee for receipt of the items at their premises. Assessee might have chosen to withdraw the depreciation based on subsequent developments - mere withdrawal of depreciation by the assessee at the assessment stage itself does not amount to be a valid reason for treating the transaction as non-genuine and for coming to a conclusion that it had concealed income or furnished inaccurate particulars of such income. Incorrect claim by itself will not tantamount to furnishing of inaccurate particulars - thus, levy of penalty u/s 271 (1)(c) was not warranted - decided in favour of assessee.
|