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2019 (2) TMI 640 - ITAT DELHIPenalty u/s 271(1)(c) - reason for depreciation being claimed at 120% on air pollution control of equipments on items over 120 days and 60% for items below 120 days - Held that:- Assessee was under bona fide belief that depreciation calculated by software was correct. Thus in our view assessee was in bonafide belief that it is eligible for depreciation at 120% and that foreign exchange fluctuation loss on account of purchase of sale was a revenue expenditure. It is observed that explanation offered by assessee has not been found to be false by AO. It is a case of wrong claim, which cannot be categorised within ambit of filing of inaccurate particulars. Genuineness of foreign exchange fluctuation loss on account of purchase of assets has not been disputed by the AO. During the course of assessment proceedings, only the claim of deduction on account of additional depreciation and foreign exchange fluctuation loss has been disallowed as the same was not found to be allowable as per the Income Tax Act. Thus, it is a case of mere disallowance of claim of deduction on account of additional depreciation and foreign exchange fluctuation loss. In the case of Reliance Petro Product Ltd. (2010 (3) TMI 80 - SUPREME COURT) mere disallowance of claim of expenditure does not attract penalty u/s 271(1)(c). Relying upon the decision of Reliance Petro Products Ltd., the Assessing Officer is hereby directed to delete the impugned penalty. - Decided in favour of assessee.
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