The Gujarat High Court has ruled out that No Penalty levied when excess depreciation claimed having been surrendered by the assessee itself without any prior detection of the Revenue.
Reetu | Jul 22, 2023 |
No Penalty when excess depreciation surrendered without any prior detection of the Revenue: HC
The Gujarat High Court in the matter of THE PRINCIPAL COMMISSIONER OF INCOME TAX Vs. AXIS BANK LTD. has said that No Penalty levied when excess depreciation claimed having been surrendered by the assessee itself without any prior detection of the Revenue.
The appellant has filed present Tax Appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as `the Act’). The same is arising out of an order dated 29.6.2022 passed by the Income Tax Appellate Tribunal (hereinafter referred to as `the Tribunal’) in ITA No.1682/Ahd/2019 for A.Y. 2015-16.
The learned advocate for the appellant has proposed the following substantial questions of law for consideration:
“(a) Whether in the facts and in the circumstances of the case, the learned ITAT has erred in law and on facts in deleting the penalty of Rs.2,30,45,220/- levied u/s.271(1)(c) of the Act, without appreciating that the assessee had furnished inaccurate particulars of income in the return of income filed by it?”
In the case on hand, on perusal of the decision of the learned ITAT, the learned ITAT has observed that the addition made in the impugned case on account of excess depreciation claimed having been surrendered by the assessee itself without any prior detection of the Revenue and the excess claim having been demonstrated to have been made for the bonafide reasons and hence, the learned ITAT has held that the case is not for the levy of penalty. It is further observed by the learned ITAT that the assessee itself to align its books of accounts with MCA notification disclosed all particulars relating to the excess claim.
In view of the totality of the facts and decisions rendered by the Hon’ble Supreme Court and the decision of the Coordinate Bench of this Court in the case of M/s. Bell Ceramics Limited (Supra), we are of the considered opinion that in the present case, no question of law, much less, any substantial question of law arises for consideration of this Court. Hence, this appeal is dismissed with no order as to costs.
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