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2018 (2) TMI 343 - AT - Income TaxPenalty u/s 271(1)(c) - willful evasion of tax by claiming deprecation on building - Held that:- Penalty u/s 271(1)(c) of the Act cannot be levied and reliance is placed on the decision in the case of Reliance Petroproducts [P] Ltd [2010 (3) TMI 80 - SUPREME COURT] wherein has been held that no penalty u/s 271(1)(c) of the Act could be levied only in mere making a claim which is not sustainable in law by itself. No penalty proceedings were initiated by the Assessing Officer in assessment year 2006-07 and facts of the present case are identical in the impugned assessment year. Moreover, it is a case where no individual is being benefitted by the claiming wrong depreciation. This is a bonafide mistake made by the assessee without any intention to evade tax. Moreover, the assessee has already shown losses for the previous years. The assessee has submitted reasonable explanation on the basis of the report of a qualified auditor. - Decided in favour of assessee
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