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2014 (4) TMI 562 - HC - Income TaxLevy of penalty for claim of excess depreciation - Minimum alternate tax - Change in method of charging depreciation - Straight line to written down value method - Held that:- The decision in Apollo Tyres Vs. CIT [2002 (5) TMI 5 - SUPREME Court] followed - the AO while computing the income u/s 115-J has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act - The AO has the limited power of making increases and reductions as provided for in the Explanation to the section - the AO does not have the jurisdiction to go behind the net profit shown in the profit and loss account except to the extent provided in the Explanation to Section 115-J - under the Companies Act, 1956, both straight line method and written down value method are recognized - once the amount of depreciation actually debited to the profit and loss account is certified by the auditors – then the decision would go in favour of Assessee. Penalty u/s 271(1)(c) of the Act - Excess depreciation claimed Computation of profits u/s 115J of the Act – Held that:- The decision in Commissioner of Income Tax Noida Vs Aleo Manali Hydro Power P Ltd. [2013 (9) TMI 751 - ALLAHABAD HIGH COURT] followed - when the computation was made u/s 115JB, the concealment had no role to play and was totally irrelevant - the concealment did not lead to tax evasion at all - The book profit disclosed by the assessee for the purpose of the liability of tax u/s 115 J is relevant and not the Income determined under the provisions of Income Tax Act - The Tribunal on the facts and circumstances of the case has further recorded the finding that on the facts and circumstances of the case and on the bonafide of the explanation given by the assessee and the disclosure made in the accounts accompanying the return, no penalty is leviable - The finding of the Tribunal is a finding of fact – Decided against Revenue.
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