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2015 (2) TMI 805 - PUNJAB & HARYANA HIGH COURTPenalty under section 271(1)(c) - furnishing false information in respect of investment allowance/ depreciation claims, while the quantum appeal of the assessee before the hon'ble High Court is pending for decision - ITAT deleted the addition - Held that:- The assessee had produced the report of M/s. Blue Star Ltd. through whom the assessee had purchased the machineries and who were responsible for erecting and commissioning of the same which corroborated the version of the assessee. The purchase of machinery during the assessment year 1977-78 was not doubted in view of bills, gate pass, freight charges paid, etc. However, while disallowing depreciation and investment allowance, on the basis of the report of M/s. ABC Consultants Ltd., it was recorded that the machinery was not put to use during the assessment year 1977-78. The report of M/s. ABC Consultants Ltd. was preferred over the report of M/s. Blue Star Ltd. and addition on account of disallowance of depreciation and investment allowance was sustained during the assessment proceedings. In the present case, the Tribunal while deleting the penalty had discussed the plausibility of both the reports and adopted a view deleting the penalty levied which is acceptable even though the addition has been sustained in the assessment proceedings regarding disallowance of depreciation and investment allowance by preferring one set of evidence.- Decided in favour of the assessee
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