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2014 (12) TMI 517 - ITAT AGRALevy of penalty u/s 271(1)(c) – Excess depreciation on WDV of bus claimed by mistake – No malafide intention - Held that:- Following the decision in Sarv Prakash Kapoor Versus Deputy Commissioner of Income-tax-4(1), Agra [2012 (10) TMI 801 - ITAT, AGRA] - assessee contended that the books have been prepared by the Accountant, who did not understand that depreciation should not be claimed on the asset which was sold during the accounting year - Due to this mistake, excess depreciation was claimed and there was no mala fide intention to claim excess depreciation or to conceal the income or particulars of income - such mistakes are rectifiable during the course of assessment proceedings - Rectifications of such mistakes are not concealment of particulars of income or furnishing of inaccurate particulars of income - The assessee explained that there is a bona fide mistake in calculation - The AO though has invoked explanation-1 to section 271(1)(c) but he did not find that the explanation furnished by the assessee was a false explanation - the assessee has substantiated his explanation by submitting complete facts - the explanation of the assessee was bonafide and under that facts and circumstances, section of 271(1)(c) is not applicable – thus, the AO was not justified in levying penalty u/s 271(1)(c) – relying upon CIT vs. Reliance Petro Product Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] - merely because the assessee claimed deduction of interest expenditure which has not been accepted by the Revenue, penalty u/s 271(1)(c) is not attracted - penalty is discretionary in nature, should not be imposed in each and every case – Decided in favour of assesse.
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