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2013 (4) TMI 154 - HC - Income TaxPenalty u/s.271(1)(c) - Penalty regarding claiming excess depreciation - Held that:- The Tribunal recorded excess depreciation originally claimed was on account of bonafide and inadvertent mistake on the part of the assessee. During the course of the assessment proceedings, the assessee realised its mistake and pointed out the same mistake should not be visited with penalty - If the time to file a revised return had expired. In any event, it is not disputed that it was a bonafide mistake on the part of the assessee. Penalty regarding wrongly claiming loss on sale of garment unit as a revenue deduction - Held that:- Tribunal records a finding that in the profit and loss account filed along with the return of income, the assessee has clearly described the loss . This loss was added to the net loss in the computation of the total income. Thus, there was complete disclosure - The Tribunal also records that the loss was claimed as a revenue expenditure as the Chartered Accountant did not advice them correctly as to the legal position - The mistake was noticed and corrected by the assessee. The Tribunal concluded the claim for deduction made by the assessee was on account of a bonafide mistake and in such circumstances, the levying of penalty was not justified. Since the decision of the Tribunal is based on finding of fact, we see no reason to entertain above questions - Appeal is dismissed in favour of Assessee.
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