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2018 (10) TMI 433 - ITAT DELHIPenalty imposed u/s 271(1)(c) - details furnished by the assessee in his return are found to be incorrect or erroneous or false - whether assessee voluntarily agreed to surrender the tax on value of depreciation wrongly taken on land and the this mistake was never intentional? - Held that:- We find that assessee is a professional and senior lady Gyne Doctor and filed income tax return at ₹ 10,58,44,690/- for assessment year 2010-11. The accounts were audited and Form 3CD was filed by the Chartered Accountant and income tax return were filed on the advice of the Chartered Accountant. The bonafide/inadvertent error on claiming depreciation on composite value of building purchased for medical profession as no bifurcation of land and building was available. On the advice of Chartered Accountant and Auditor, the assessee carried out bifurcation cost of land and cost of building and surrendered excess depreciation claimed at ₹ 10,86,880/- on land with and paid tax thereon. The assessee voluntarily agreed to surrender the tax on value of depreciation wrongly taken on land and the this mistake was never intentional. The assessee has voluntarily bifurcated the value of land and building and surrendered the values of depreciation on land and the act of the assessee under the bonafide belief. Assessee had furnished all the particulars in return filed and never concealed the particulars of income nor submitted false information. We also note that depreciation on full value was allowed in AY 2008-09 u/s. 143(1) and further depreciation was allowed on full value in AY 2009-10 u/s 143(3). As during the assessment proceedings for AY 2010-11 u/s. 143(3) assessee was asked to segregate the value of land and building and accordingly, the assessee segregated the value of land based upon circle rate. The assessee has neither concealed the income nor furnished inaccurate particulars of income and there are no findings of the AO and the CIT (Appeals) that the details furnished by the assessee in his return are found to be incorrect or erroneous or false. Under these circumstances, in our view the penalty in dispute is totally unwarranted and deserve to be deleted. Accordingly, we delete the penalty u/s. 271(1)(c) - Decided in favour of assessee.
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