TMI Blog2015 (3) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 32(1)(iia) we are of the opinion that the assessee has made a bonafide claim by disclosing all material details before the Assessing Officer and therefore, the claim of the assessee is neither concealment of income or furnishing of inaccurate particulars. Therefore, it is not a fit case to levy penalty under section 271(1)(c) of the Act. - Decided against revenue. - I.T.A. Nos. 2711 and 2712/Mds/2014 - - - Dated:- 5-3-2015 - A. Mohan Alankamony (Accountant Member) And V. Durga Rao (Judicial Member) For the Appellant : N. Rengaraj, CIT For the Respondent : Dr. Anita Sumanth, Advocate ORDER V. Durga Rao (Judicial Member) These two appeals filed by the Revenue pertaining to the same assessee are directed ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ists of assets acquired during the year 2005-06 and subsequent years and claimed 35% depreciation on the same. The higher depreciation includes 20% additional depreciation claimed by the assessee company. 3. The Assessing Officer has further observed that the assessee company has claimed additional depreciation on plant and machinery acquired and installed in the preceding years other than the new machinery acquired and installed during the previous year. As per the provisions of section 32(1)(iia) of the Act, no deduction is allowable to any plant and machinery, the whole or the actual cost of which is allowed as deduction whether by way of depreciation or otherwise, in computing the income chargeable under the head profit and gains o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their income and expenditure. 4. Against the penalty order passed by the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A). The ld. CIT(A) has deleted the penalty by observing that the claim made by the assessee is bonafide, all the facts relating to the computation of income has been disclosed and the provisions of section 271(1)(c) of the Act are not attracted. 5. On being aggrieved, the Revenue is in appeal before the Tribunal. 6. The ld. DR supported the order passed by the Assessing Officer. 7. On the other hand, the ld. Counsel for the assessee has submitted that all the details were filed before the Assessing Officer during the course of assessment proceedings and it is only a legal claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the plant and machinery as per statute and when it is not able to claim the entire additional depreciation, the left over portion can be claimed in subsequent year being the provisions of section 32 of the Act is a beneficial provision. Under these facts and circumstances of the case, by considering the provisions of section 32(1)(iia) of the Act, we are of the opinion that the assessee has made a bonafide claim by disclosing all material details before the Assessing Officer and therefore, the claim of the assessee is neither concealment of income or furnishing of inaccurate particulars. Therefore, it is not a fit case to levy penalty under section 271(1)(c) of the Act. 9. The Hon ble Supreme Court in the case of CIT v. Reliance Petropro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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