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2010 (4) TMI 673 - AT - Income TaxPenalty - False Claim For Depreciation - The CIT(A) confirmed the findings of the AO and concluded that only a paper transaction was carried out to defraud the Revenue - Mere making of an incorrect claim, as is the settled legal position in view of Hon'ble Supreme Court's judgment in the case of CIT vs. Reliance Petroproducts Ltd. (2010 -TMI - 75701 - SUPREME COURT) could not be visited with penal consequences under s. 271(1)(c) of the Act - The lease in question was a sham transaction, as has been the uncontroverted and unchallenged finding of the CIT(A), and right from inception. as evident from the tripartite arrangement as well, the transaction did not have any commercial motive - it is case of the assessee that the income which is sought to be concealed at best could be depreciation claim as reduced by the interest component of lease instalment which is brought to tax - Impugned penalty is levied - The appeal is dismissed
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