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2019 (1) TMI 1520 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of depreciation on electric fittings - rate of depeciation - Held that:- It is observed from orders of authorities below that assessee claimed depreciation at 25% on ground that these were electrical installations which are not in the nature of Electrical fittings and capital expenditure made for DG set, Transformers, switch panels and other accessories required to run a particular machinery. It is also observed that assessee was of the view that these installations comes within definition of plant under section 43 (3) of the Act. Further Ld.CIT (A) himself records that there has been differences of opinion with regard to applicability of rate of depreciation on items of Electrical installation. Merely because assessee claimed depreciation at 25% treating items to be plant, which claim was not acceptable to revenue, would not by itself attract penalty under section 271 (1) (c) of the Act. The disallowance can at best be a wrong claim but not a false claim. See COMMISSIONER OF INCOME-TAX VERSUS BACARDI MARTINI INDIA LTD. [2006 (9) TMI 104 - DELHI HIGH COURT] - Decided in favour of assessee Penalty levied on account of technical assistance/know-how expenses - Nature of expenses - Held that:- It is observed that assessee offered explanation which has not been found false by Ld.AO or by Ld.CIT(A). Further in our considered opinion claim of capital versus revenue expenditure itself is debatable and therefore cannot be subject matter of penalty by way of concealment or filing of inaccurate particulars.- Decided in favour of assessee
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