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2017 (11) TMI 378 - AT - Income TaxPenalty u/s 271 (1)(C) - transfer of general reserve and claim of higher depreciation - assessee society is registered U/s 12AA - Held that:- The claim of depreciation at higher rate was based on bonafide belief that the buses for transportation of students will be eligible for higher rate of depreciation. The assessee has made full disclosure of particulars before the Assessing Officer, therefore, in our considered view, this amount cannot be treated as concealed particulars of income. Further the amount of ₹ 55,83,342/- was transferred to general reserve, on this amount also, the assessee has not furnished inaccurate particulars of income. In this factual matrix, we also note that there was no tax implication arising out of the assessment passed by the Assessing Officer for the reason that such additions got set off with the brought forward losses. Considering all these facts and circumstances, we sustain the order of the ld. CIT(A) on this issue. For he amount transferred to general reserve for which we have already taken a view that the assessee has made the claim in the return of income and has submitted all relevant documents. Further it was a debatable issue, therefore, in this year also, we sustain the order of the ld. CIT(A). The other issue for levy penalty of ₹ 9,45,825/- was that income over expenditure. The issue was debatable and it was simply a difference of opinion between A.O. and assessee society. The assessee had neither concealed income nor filed inaccurate particulars of income. On this issue also, we agree with the findings of the ld. CIT(A) that this was a debatable issue and there was different opinion on such issue. Considering all these facts, we find no fault in the order of the ld. CIT(A) and accordingly, we sustain the same. - Decided against revenue
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