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2019 (2) TMI 1274 - HC - Income TaxReopening of assessment - bogus claim of depreciation - HELD THAT:- Tribunal in the instant case after taking note of all the factual details, in our view, rightly held that the entire transaction was bogus and the assessee claimed depreciation on a lease to M/s Bellary Steels & Alloys Ltd,which were also bogus. Further, the Tribunal rightly held that the intention of the assessee was clearly malafide from the beginning. It manufacture evidence which fell flat in the face of deposition of related parties and other evidence brought in by the Assessing Officer. With these findings, the Tribunal rightly confirmed the order passed by the CIT(A). Since the assessee has engaged in fraudulent activity by making a bogus claim of depreciation. The assessee's intention is tainted with malafide and it attempted to create evidence which was self serving as related parties had uttered the truth. It defies logic as to how the cargo of 67,700 kgs could have been transported in two lorries. The transporter who is said to have been transported only SGCI rolls has stated that he never transported any rolls but transported only scrap. Therefore, the assessee is not entitled for any relief. As already held that the assessee is guilty of fraud and has perpetuated fraud todefraud the revenue. The assessee having resorted to unscrupulous and illegal activity is not entitled to any indulgence. Further, the Tribunal has noted that identical transaction was done even in the year 2008 where penalty was levied respect of similar transaction making a bogus claim for depreciation on SCGI rolls from the very same M/s Bellary Steels & Alloys Ltd. [2014 (1) TMI 1641 - KARNATAKA HIGH COURT] and this order of penalty was confirmed by the High Court in the case of CRN Investments (P)Ltd vs. CIT [2007 (2) TMI 166 - MADRAS HIGH COURT]. - Decided against assessee.
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