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2018 (9) TMI 1176 - HC - Income TaxPenalty u/s.271(1)(c) - Assessee in its return of income claimed depreciation @ 40% on plant and machinery when the applicable rate of depreciation was only 25% for the subject Assessment Year - Held that:- The fact that the assessee was eligible to claim higher rate of depreciation @ 40% in the immediately preceding year was not disputed. It is also quiet natural in this computer era to prepare Depreciation chart by downloading the relevant figures from the chart of the immediately preceding year. Viewed from this angle, we are of the view that the explanation of the assessee appears to be bonafide one. It is quite possible that the depreciation rate may escape the attention while preparing the Depreciation Chart, since the basic depreciation rate has not been changed in the Statute during the year under consideration. Hence, we are of the view that the explanation given by the assessee should be considered as bonafide one and hence Explanation 1 to sec.271(1)(c) shall apply to the same.- Decided in favour of assessee
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