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2009 (7) TMI 679 - HC - Income TaxInterest- 1.Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was justified in deleting the interest of Rs. 15,41,888 charged under section 216 of the Income-tax Act, 1961 without appreciating the fact that the advance tax estimate filed by the assessee were grossly incorrect and did not reflect true and correct income of the assessee? 2. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in admitting the claim of the assessee for depreciation in higher rate relying upon the assessee's explanation that machinery comes into contact with corrosive chemicals without appreciating the fact that only corrosive ingredient coming into contact with machinery is sulphur dioxide but its percentage is well within tolerable limits? Held that- (1) that the machinery installed by the assessee came into contract with a corrosive chemical and therefore, it was entitled for higher depreciation. (2) that the explanation given by the assessee as to the filing of the estimated income was genuine and the Tribunal had accepted it. Hence the Tribunal had rightly deleted the interest under section 216.
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