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TMI Blog2015 (3) TMI 1279X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the case are that the assessee is engaged in the business of manufacture and sale of pumps and motors with the brand name 'CRI'. The assessee had filed its return of income and the same was processed under section 143(1) of the Income Tax Act. Subsequently, after following due process, the assessment was completed under section 143(3) of the Act by disallowing the claim of addition depreciation to the extent of _.1,98,26,411/-. In the assessment order, the Assessing Officer has observed that the assessee company has claimed depreciation on plant and machinery and to facilitate the same, the assessee has divided the plant and machinery into three categories viz., (i) plant and machinery acquired prior to 2002 on which the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture and production of any article or thing in the previous year relevant to the respective assessment year. Once a new machinery or plant acquired and installed in a year and claimed depreciation and additional depreciation for the year of installation, the assessee is not eligible for additional depreciation in the subsequent year since the plant and machinery lost its character of new plant and machinery. The assessee is eligible for additional depreciation only to the new plant and machinery acquired and installed during the previous year. The additional depreciation is only eligible to the new plant and machinery acquired and installed during a given year and cannot be extended to subsequent years as such, plant and machinery will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnishing of inaccurate particulars. The claim made by the assessee was by interpreting the provisions of section 32(1)(iia) of the Act. 8. We have heard both sides, perused the materials on record and gone through the orders of authorities below. In this case, the assessee has claimed additional depreciation of _.1,98,26,411/- on the assets acquired during the period from 2002-03 to 2005-06. The Assessing Officer has denied the additional depreciation claimed by the assessee by observing that the assessee is not eligible for additional depreciation in subsequent years. The plant and machinery lost its character of new plant and machinery. The assessee is eligible for additional depreciation only to the new plant and machinery acquired an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 271(1)(c) Act. A mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing of inaccurate particulars regarding the income of the assessee. Such a claim made in the return cannot amount to furnishing of inaccurate particulars". Respectfully by following the above decision of the Hon'ble Supreme Court, we find that it is not a fit case to levy penalty under section 271(1)(c) of the Act and accordingly, the penalty levied by the Assessing Officer stands deleted. 10. So far as assessment year 2009-10 in I.T.A. No. 784/Mds/2014 is concerned, except change in figure, the facts of the case are common and the grounds raised by the Revenue are similar to that of in the assessment year 2008-09. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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