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2017 (5) TMI 1589 - RAJASTHAN HIGH COURTPenalty u/s 271(1)(c) - depreciation claim on expenditure in respect of mining right - Held that:- The satisfaction for initiation of penalty is coupled with the findings of the assessment order would show that satisfaction existed in the course of assessment itself and deemed to constitute satisfaction. The Hon’ble Supreme Court in the case of Union of India vs. Dharmendra Testile Processors [2008 (9) TMI 52 - SUPREME COURT] has held that willful concealment is not an essential ingredient for attracting civil liability. The assessee intentionally claimed the capital expenditure as revenue expenditure on new project (i.e. cement), which was separate activity of the assessee company from the existing business i.e. production of fertilizers.” In our considered opinion, in view of the decision of the Supreme Court where it has been held that wrong claim of depreciation will not invite penalty. - Decided in favour of assessee.
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