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TMI Blog2017 (2) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... s in holding that the depreciation on building is allowable to the assessee ignoring that:- i. Depreciation is allowable w.r.t as asset only when it is put to use during the relevant period and in the case under consideration, there has been no business activity during the year or in the subsequent year and as such the asset cannot be said to have put to use during the period. ii. The case laws relied by the assessee including Bharat Alunimum co. Ltd., Ganga Properties Ltd are not applicable, as these cases, the assets which were not put to business use were part of block of assets which in the case under consideration, the whole block itself has not been put to business use." 3. The assessee has raised the following grounds of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al No. 511/Del/2011 (AY 2007-08) dated 20.04.2012 Disallowed deprecation on goodwill amounting to Rs. 713672/- Depreciation on goodwill is allowable in view of the decisions of Hon'ble Delhi High Court in Areva T&D India Ltd. Vs. DCIT (2012 TIOL-234 HD-Del-IT) and Hon'ble Supreme Court in Cit Vs. Smiffs Securities Ltd. (2012-TIOL-53-HON'BLE SUPREME COURT -IT) Disallowed the claimed of the assessee u/s 10B of Rs. 20702536/- The matter has been restored back to the file of AO, by the Hon'ble ITAT in IT Appeal No. 511/Del./2011 (AY 2007-08) dated 20.04.2012. 5. The revenue is in appeal on the grounds raised before us whereas, the assessee has contested the confirmation of the penalty on disallowance of claim of repairs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities and submitted that as the authorities have upheld the disallowance the penalty is correctly levied. 9. We have carefully considered the rival contentions and also perused the order of the coordinate bench in the case of the assessee which was also levied on disallowance of renovation expenses, foreign travel expense, additional deprecation and claim of exemption u/s 10B of the Act. almost all the issues of penalty in these two appeals were also there in the order cited before us. Vide para No of that order the penalty levied u/s 271(1)(c) of the Act was deleted as under:- 4. We have considered the rival submissions and have perused the order of the AO. With regard to the disallowance of Additional Depreciation and of Exemption u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epairs and Maintenance in respect of leased buildings was revenue or capital in nature or whether the part of the Foreign Travelling Expenses were for the business purposes of the assessee is clearly debatable in nature. This is a case where the assessee has disclosed all the material facts necessary for assessment at the time of filing of the return itself. The conduct of the assessee in this case was bonafide. In these facts of the case, we are of the view that it is not a fit case for levy of penalty u/s 271(1)(c) of the Act on these two items of disallowances made by the AO and accordingly the penalty levied u/s 271(1)(c) of the Act on disallowance of Repair and Maintenance Expenses and out of Foreign Travelling Expenses is cancelled." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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