9911796707
TMI Blog2002 (1) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... t. [Order per : S.S. Sekhon, Member (T)]. - The appellant has taken Modvat credit on capital goods and the same was denied as it was learnt that they had also claimed depreciations on the value of capital goods under the Income Tax Returns filed by them. This was considered to be not permissible under the terms of provisions of Rule 57R(5). 2. We have heard both sides and considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act for the assessment year (1996-97). The said income tax returns had been duly assessed by the income tax department on 28-11-97. As regards the claim of the appellant that they had filed a revised income tax return, the findings of the Commissioner is as follows. "It has also been contended that the assessee had filed a revised return before the Income Tax Authorities on 31-3-98 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se occurred since the accounts were attended to by the head office located in Bangalore while the factory is located at Nanjungud and the problem was due to lack of communication between the factory and the head office. He found this explanation not to merit consideration and was least convincing and held that in Taxation, matters cannot be left at the mercy of the type of communication distortati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Act. He also rejected the claim made at the personal hearing that the credit to be reversed should be limited only to the amount of depreciation claimed by finding no merits of such a claim. A stringent penalty under Rules 57(U)(6) read with Rule 173Q an interest under Rule 57(U)(8) was determined. (d) We find substance in the reliance of the decision of this Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-determination of the facts regarding status of the revised returns as claimed to have been filed in this case, we find no reason to uphold the order of the penalty and interest as arrived at by the learned Commissioner. The penalty and interest could only be determined once it is established that the alleged 'double benefit' i.e. of Modvat credit and income tax depreciation has actually been ava ..... X X X X Extracts X X X X X X X X Extracts X X X X
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