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2016 (5) TMI 710 - ITAT DELHIPenalty u/s 271(1)(c) - disallowance or setting up of the business of manufacturing and export of garments - Held that:- By applying the parameters laid down by Hon’ble Karnataka High Court in the case of CIT vs. Manjunatha Cotton & Ginning Factory ( 2013 (7) TMI 620 - KARNATAKA HIGH COURT ), it appears that there was full disclosure by the assessee, however the expenditure claimed was inadmissible in law. Respectfully following the ratio laid down above we are of the opinion that the disallowance of the claim of expenses would not amount to furnishing of inaccurate particulars by the assessee. We therefore delete the penalty levied in respect of the disallowance of claim of expenditure. In respect of depreciation claimed by the assessee, it is observed that the assessee has shown the income earned from renting of the property under the head “Income from House Property”. The assessee has wilfully shown the rental income under the head “Income from House Property” and further claimed depreciation. The assessee in such a situation has filed wrong particulars of income, which is apparent from the face of the record. We, therefore, confirm the penalty levied by the ld. AO on the disallowance of the depreciation. - Decided partly in favour of assessee
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