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2017 (6) TMI 1121 - AT - Income TaxDepreciation on hardening and tempering furnace disallowance - penalty u/s. 271(1)(c) - Held that:- In any case of the matter, that depreciation for the first year is subject to the condition of user is unexceptional, being also implicit in the assessee’s contention, as made before us, i.e., of the furnace having been subject to trial production and, thus, ‘used’, and it’s claim at 50%, which is only on being put to use for a period less than 180 days during the relevant year. The assessee’s claim, in fact, is not a wrong or erroneous claim, much less bona fide, but a false claim. The assessee itself states the claim for depreciation on the same plant for the following year as having been made at the base rate of 25%, applicable to general plant and machinery, further underscoring the impugned claim to be without basis. The withdrawal of the claim cannot under the circumstances be regarded as voluntary. The assessee, accordingly, is liable for penalty u/s. 271(1)(c) on the entire claim for depreciation on the relevant plant and machinery, i.e., for ₹ 140.56 lacs, i.e., including the claim to the extent stated as withdrawn. - Decided against assessee. Disallowance of deduction under section 80-IB - Held that:- The assessee in our view had a reasonable basis to stake a claim for deduction u/s. 80IB in the manner it does, i.e., at ₹ 277.66 lacs. No ground for levy of penalty for furnishing inaccurate particulars of income is in our view therefore made out. We decide accordingly, confirming its deletion.- Decided against revenue.
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