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2014 (2) TMI 476 - ITAT MUMBAIConfirmation of Penalty u/s 271(1)(c) of the Act – Nature of Lease – Whether the lease was a finance lease or it was an operating lease between the assessee and RSEB – Held that:- The Tribunal has not accepted that the assessee has adopted colourable device in order to reduce its tax liability and has stated that the agreement entered into between the parties, i.e assessee and RSEB were legal - The Tribunal has also held that there a sea change has taken place by delivery of the judgment of the Hon'ble Apex Court in the case of Asea Brown Bovery Ltd (supra) in respect of Finance lease and to allow depreciation to the lessee and not to the lessor. The agreement between the assessee and RSEB was in the nature of finance lease - Thus the assessee is not entitled for depreciation on the lease assets - if the assessee made a claim bonafide and also offered explanation which has not been accepted but it is not false or is not of the nature that the assessee is not able to substantiate its explanation, the provisions of section 271(1)( c ) of the Act is not attracted - it cannot be said that the assessee has furnished inaccurate particulars of income and/ or the assessee has concealed its income – Relying upon CIT v. Reliance Petroproducts (P.) Ltd. [2010 (3) TMI 80 - SUPREME COURT] - merely because the claim of the assessee has not been accepted but the assessee has made the bonafide claim, the provisions of section 271(1)( c ) of the Act are not attracted – thus, the levy of penalty in the case is not justified – Decided in favour of Assessee.
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