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2022 (7) TMI 114 - ITAT AHMEDABADPenalty u/s. 271(1)(c) - penalty imposed for filing of inaccurate particulars of income in Income Tax Return - excess depreciation claimed by the assessee - HELD THAT:- Clearly all the years when the assessee had claimed excess depreciation on the land and plant and machinery component of the properties purchased in 2011 and 2012 Revenue had failed to detect the same. Even in the impugned year it was not the AO who discovered the same, but it was the CIT(A) who became aware of this excess claim of depreciation that too on the suo moto submission of the assessee. The letter filed by the assessee to the CIT(A) reveals that the admission was made not on account of a patently incorrect claim made earlier by the assessee. But on the contrary excess depreciation on the land component of the properties had been claimed based on a legal opinion, and when it sought to align its books in accordance with MCA notification, it reversed what according to it was excess depreciation claimed and offered the same to tax - It is not the case that the Revenue has categorically found the assesses claim of depreciation to be patently not in accordance with law. In fact whatever was surrendered by the assessee has been accepted by the Revenue without even examining the same. Thus the addition made in the impugned case on account of excess depreciation claimed, having been surrendered by the assessee itself without any prior detection by the Revenue, the excess claim having been demonstrated to have been made for bonafide reasons, it is surely not a case for levy of penalty at all. All particulars, relating to the properties on which depreciation was claimed, was duly disclosed by the assessee. And the assessee itself, to align its books of accounts with an MCA notification, disclosed all particulars relating to the excess claim also. We therefore hold that the assessee cannot be charged with having concealed/furnished any inaccurate particulars of income in the present case. On the contrary we agree with the ld. Counsel for the assessee that the assessee had on its own come clean before the Department when it rectified its Books of accounts. Appeal of assessee allowed.
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