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2022 (10) TMI 1137 - AT - Income TaxPenalty u/s 271(c) - Depreciation claim disallowed - claim of depreciation which was disallowed as the assessee has claimed the depreciation on value of land and building combined but subsequently the depreciation on land portion was disallowed and added to the assessee’s income - HELD THAT:- We find that the assessee has relied upon the decision of the Hon’ble Supreme Court in the case of CIT vs Reliance Petro Products (P.) Ltd. . [2010 (3) TMI 19 - SUPREME COURT] - The same is applicable fully on the facts of this case where, it was held that denial of claim of the assessee cannot ipso facto lead to the levy of penalty. Allowance and computation of correct depreciation is bounded duty of the Assessing Officer. Hence, correction of a wrong claim by the assessee in this case cannot lead to a visit by the rigors of penalty u/s 271(1)(c) of the Act upon the assessee. Hence penalty u/s 271(1)(c) in this case is not leviable. Therefore, we set-aside the order of the authorities below and delete the penalty. Appeal of the assessee stands allowed.
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