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2022 (5) TMI 109 - AT - Income TaxPenalty u/s. 271(1)(c) - claim of deduction u/s 24(a) - HELD THAT:- There is no straight jacket formula to say that particular act was a bonafide error or another a deliberate act. The assessee is required to demonstrate from the records that such error occurred due to inadvertent and was not deliberate to avoid tax liability. In the case in hand, the assessee has successfully demonstrated that claim of deduction u/s 24(a) of the Act, was made as the rent was offered for tax under the income from house property. Therefore, in the light of the judgement of Price Waterhouse Coopers (P) Ltd.[2010 (3) TMI 80 - SUPREME COURT] the penalty imposed by the AO on this issue cannot be sustained. The AO is therefore directed to delete the penalty. Addition sustained on account of disallowance of claim of depreciation - One of the averments of the assessee before the authorities below was that under the identical facts, the Ld.CIT(A) allowed the claim of depreciation in succeeding year. This fact is not rebutted by the Revenue. It was further contended that the assessee had disclosed and furnished true and correct particulars of its income at the time of filing of return. The assessee had not acted in defiance of law and did not act on conscious in this regard to the law. We find merit into the contention of the assessee merely because if a claim is rejected by the Assessing Officer, would not ipso facto made the assessee liable for penalty. In the present case the Ld.CIT(A) himself allowed the claim of depreciation under the identical facts in the succeeding year. The Revenue has not pointed out any change into the facts and circumstances of the case in the year under appeal. Therefore, in the light of the judgement of Hon’ble Supreme Court in the case of CIT vs Reliance Petroproducts (P.) Ltd. [2010 (3) TMI 80 - SUPREME COURT]the levy of penalty was not justified. Appeal of assessee allowed.
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