Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 1054 - ITAT RAIPURPenalty proceedings u/s 270A - under reporting of the income - allowability of depreciation on acquisition of mining rights treating the same as intangible asset - malafide intentions to under report the income by claiming depreciation - allowability of depreciation so claimed by the assessee was denied by the revenue on account of no activity leading to income from extraction of Iron Ore in the relevant year or in the preceding year - CIT(A) was convinced with the explanations of the assessee, observing that the disallowance of depreciation is a subject matter of debate as in the case of holding company of the assessee i.e., NMDC the mining right has consistently been held as a depreciable asset eligible for depreciation u/s 32 HELD THAT:- Since there were different order of different courts including case of NMDC, the holding company of the assessee before us, wherein, the allowability of depreciation was a debatable issue. Moreover, since the mining right are held as an intangible asset eligible for depreciation u/s 32 of the Act by the ITAT, Hyderabad in the case of NMDC Limited for various assessment years from AY 2008-09 [2014 (3) TMI 682 - ITAT HYDERABAD], AY 2009-10 [2014 (9) TMI 629 - ITAT HYDERABAD], AY 2010-11 [2014 (7) TMI 993 - ITAT HYDERABAD], AY 2011-12 [2015 (3) TMI 928 - ITAT HYDERABAD], AY 2012-13 [2017 (5) TMI 1714 - ITAT HYDERABAD], AY 2013-14, AY 2014-15 [2018 (10) TMI 1120 - ITAT AHMEDABAD] the assessee company has a bonafide belief that depreciation would be allowed on such mining rights to the assessee company. It is also an admitted fact transpired from the order of Ld. CIT(A) that the assessee appellant had filed an application before the Ld. AO, seeking immunity u/s 270AA of the Act after fulfilling all the pre-requisite conditions of the said section. There was no reason for the Ld. AO to deny grant of immunity to the assessee towards the application submitted u/s 270AA. Considering the facts and circumstances of the case, since there were justifiable reasons supporting the bonafide belief of the assessee in claiming the depreciation on mining rights and since mala-fide intentions of the assessee could not be established by the revenue in terms of any cogent material or explanation. The decision of Ld. CIT(A) found to be worth concurrence, in absence of any plausible argument, explanation, evidence or decision by the department to extricate the findings the Ld. CIT(A), thus, we uphold the same. Therefore, Ground No. 1 of the appeal of the revenue stands dismissed.
|