2010 (12) TMI 1345 - AT - Income Tax

Summary

Issues involved: Appeals against deletion of penalties u/s 271(1)(c) for assessment years 1996-97, 98-99, 1999-2000, and 2001-02.

Assessment Year 1996-97:
- The Assessing Officer disallowed depreciation on certain transactions.
- CIT(A) set aside the assessment order for re-examination.
- Subsequent orders confirmed disallowance of depreciation.
- Penalty u/s 271(1)(c) imposed.
- ITAT's order set aside the matter for re-decision.
- Tribunal directed the Assessing Officer to re-decide after quantum appeal decision.
- Appeal allowed for statistical purpose.

Assessment Year 1998-99:
- Excess depreciation claims on transactions disallowed.
- CIT(A) confirmed disallowance of depreciation.
- Penalty u/s 271(1)(c) imposed.
- ITAT set aside the excess claim of depreciation.
- Depreciation on windmills allowed.
- Counsel for assessee provided relevant details.
- Appeal dismissed.

Assessment Year 1999-00:
- Excess depreciation claim on windmills disallowed.
- CIT(A) confirmed disallowance of depreciation.
- Penalty u/s 271(1)(c) imposed.
- ITAT allowed the claim of depreciation on windmills.
- Counsel for assessee presented facts and details.
- Appeal dismissed.

Assessment Year 2001-02:
- Disallowance of depreciation on windmills.
- CIT(A) confirmed the disallowance.
- Penalty u/s 271(1)(c) imposed.
- ITAT allowed the claim of depreciation on windmills.
- Counsel for assessee provided necessary information.
- Appeal dismissed.

In summary, the ITAT Chennai upheld the deletion of penalties for assessment years 1998-99, 1999-00, and 2001-02 as the additions on which penalties were based had been deleted. For the assessment year 1996-97, the matter was remanded back to the Assessing Officer for re-decision following ITAT's direction after quantum appeal decision. The appeal for the assessment year 1996-97 was allowed for statistical purposes, while the other appeals were dismissed.