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2015 (11) TMI 848 - AT - Income TaxPenalty under section 271(1)(c) - higher rate of depreciation on toll road claimed by assessee - Held that:- The assessee has filed the details of depreciation and also the fact that it has treated the toll road as "plant" and has claimed a higher rate of depreciation at 25 per cent. The assessee has filed an explanation in this regard which could not be said to be not bona fide. This is a case of difference of opinion between the assessee and the Department with regard to the correct rate of depreciation allowable to the assessee on its toll road and that whether the toll road is a "plant" or is a "building". It is not a case that the Revenue has gathered some material not disclosed by the assessee. It is a case of furnishing of correct particulars of income, but the difference was in the figure of allowance of deduction on account of depreciation due to the difference in the interpretation of the relevant provision of law. The issue that whether the toll road is a "plant" or a "building" is clearly debatable in nature. Thus no penalty under section 271(1)(c) of the Act could be imposed on a debatable issue. - Decided in favour of assessee.
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