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2014 (9) TMI 87 - ANDHRA PRADESH HIGH COURTClaim of 100% depreciation on imported equipment – Installation got completed or not – Held that:- Not only the machinery or plant must have been installed, but also it must have been used for the purpose of business, meaning thereby, much more than mere trial run – relying upon Deputy Commissioner of Income Tax Vs. Yellamma Dasappa Hospital [2006 (11) TMI 150 - KARNATAKA High Court] - though the applicant might have installed the machinery before 31.03.1987, it was not capable of being put to use, much less, it was, in fact, put to use – Decided against Assessee. Penalty u/s 271(1)(c) – Admission of additional evidence – Held that:- Penalty was imposed upon the applicant, almost as a consequence of disallowing depreciation - Section 271 of the Act confers power upon the Income Tax Officer to levy penalty, if it is found that any claim made by the assessee is found to be wrong - No one can claim that his understanding of a provision of law, that too, of a complicated and ever-changing enactment like the Income Tax Act, is the ultimate or free from flaw - A genuine effort made by the applicant to claim depreciation on the imported machinery, must not result in double disadvantage, on denial of depreciation and imposition of penalty – Decided in favour of assessee.
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