TMI Blog2010 (12) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... In respect of the rest of the penalty there was an another part of the said judgment in which the learned CIT(Appeals) has deleted the penalty of ₹ 6,31,640/- which was in respect of claim of higher rate of depreciation, stated to be on the machineries purchased under TUF Scheme. Against the deletion of the penalty Revenue is in appeal. In this manner against the part relief granted by the first appellate authority, now both the sides are in appeal before us. 2. Facts in brief as emerged from the corresponding penalty order passed u/s.271(1) (c) of the I.T. Act, 1961 dated 17/03/2008 and assessment order passed u/s.143(3) of the I.T.Act dated 27/01/2006 were that the assessee-company is in the business of texturising and twisting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isting activity which was an activity prior to weaving, processing and garment sector of textile industry and therefore the activity of the appellant was not covered by the Income-tax rules where the provisions for higher depreciation on TUF machineries are provided. Therefore, the higher depreciation was clearly not allowable. But as regards penalty levied it can be stated that the appellant was under the bona fide belief that since the bank had given loan under the TUF scheme the depreciation would also be available automatically. In view of these reasons I agree with the appellant that there is no deliberateness or consciousness in furnishing inaccurate particulars. Though the assessee had concealed the income by claiming higher deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank under a TUF Scheme floated by Ministry of Textile. The assessee was under an impression that the claim of depreciation was as per the specific rates prescribed, however, it was found by the Assessing Officer that those specific rate of depreciation was not admissible as per the Income Tax Rules, 1962. 5.1. On due examination of the circumstances, once the claim of depreciation was not altogether bogus or mala fide but the dispute was in respect of the correct rate of depreciation, then in our considered view that though the rate of depreciation as per Assessing Officer was correct but assessee s action should not be held as concealment of income or furnishing of inaccurate particulars. It is also evident that still the assessee is h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.1. Assessee has also contented an another confirmation of penalty in respect of foreign travelling expenses. The penalty was confirmed after assigning the following reason: 2.7.5. From the above, it is clear that the appellant has failed to even give such basic document/evidence as that of Passport to show that the foreign travel was made to China or Singapore on some particular days. The appellant failed to show that the trip was indeed made and if the trip was made it was for the purpose of business. In the absence of such basic details, the expenditure booked is clearly wrong and deliberate and hence penalty in respect of this disallowance is confirmed. 6.2. Regarding Assessee s appeal, in respect of the penalty levied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of concealment penalty. We therefore reverse the findings of the authorities below and direct to delete the penalty in respect of disallowance of brokerage. 6.3. About assessee s appeal, now we are left with the levy of penalty pertaining to disallowance of travelling expenses. During the assessment proceedings, it was noted by the Assessing Officer that towards foreign tour an expenditure of ₹ 2,15,217/- was made by the Assessing Officer. One of the Director had visited China which was arranged by South Gujarat Chamber of Commerce. Thereafter, he had gone to Singapore as well. The Assessing Officer has asked the evidence and letter from Chamber of Commerce and purpose of visit to Singapore. The assessee was not able to produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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