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2016 (8) TMI 1481 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Higher rate of depreciation on truck - @ 30% or 50% - assessee filed a revised chart of depreciation in which he calculated depreciation @ 30% on old trucks purchased from NBI Finance - assessee had finally claimed total depreciation of ₹ 7,03,22,480/- after rectifying the mistake and unabsorbed depreciation was carried forward to the tune of ₹ 3,20,81,299/- only - HELD THAT:- It emerges from the records that the assessee claimed depreciation on the newly acquired trucks @ 50% as there was a provision in the Schedule that new commercial vehicle acquired between the periods 01-01-2009 till 30-09-2009, depreciation shall be available @ 50%. However, these trucks were newly acquired by the assessee but they were not new. Therefore, the claim of depreciation was revised by the assessee during the assessment proceedings. After adjustment there was carry forward unabsorbed depreciation of ₹ 3,20,81,299/-. Similar claim of depreciation was disallowed in the assessment years 2011-12 but no penalty u/s 271(1)© of the Act was initiated. As per assessment order dated 6-11-2015 relating to assessment year 2013-14, the carry forward unabsorbed depreciation was more than ₹ 14.00 crores. The assessee has declared Short term capital gain on the sale of these trucks in the assessment year 2013-14 and capital gain has been calculated by taking depreciation @ 30%. All these facts suggest that there was an inadvertent mistake on the part of the assessee for claiming depreciation and same was rectified as soon as it was noticed. Direct to delete the penalty levied u/s 271(1)(C) - Decided in favour of assessee.
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