Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (8) TMI 8 - DELHI HIGH COURTPenalty u/s 271(1)(c) - Capital or revenue expenditure - Fees paid to ROC for increasing authorized capital - Depreciation - Assessing Officer rejected the contention of the assessee that the assessee had, by mistake claimed depreciation of 40% on tippers and excavators and since it had itself revised the computation, it was a bona fide error - In respect of penalty on the wrong claim qua payment of fee to the ROC, the penalty has been deleted on the ground that explanation given by the assessee could not be called mala fide and no particulars were concealed in this behalf Regarding depreciation - it was a case of bona fide mistake as the assessee had claimed depreciation treating the earth moving equipment to be one block assets consisting of tippers and excavators and claiming depreciation @ 40% on the entire block of earth moving equipment - since the entire block consisting of excavators and tippers was taken under the head ‘earth moving equipment’, the explanation given by the assessee was that inadvertently, in respect of excavators are the depreciation was claimed at 40% instead of 25% - On the contrary, it was better for him to claim depreciation @ 25% in this year resulting into higher written down value in the next year for claim of depreciation of a higher amount on higher written down value thereby reducing the tax liability - Appeal is dismissed
|