2013 (3) TMI 649

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..... This appeal by the assessee is directed against the order of the CIT(A) dated 23.06.2011 and arises from an order passed by the Assessing Officer dated 22.06.2010 levying penalty u/s.271(1)(c) of the Income Tax Act, 1961 (in short 'the Act') amounting to Rs. 64,320/- in relation to the A.Y. 2007-08. 2. The CIT(A) has since upheld the penalty levied by the Assessing Officer and thus the appeal of .....

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..... ) has also upheld the levy, against which assessee is in appeal before us. 4. The plea of the assessee is that the wrong claim of depreciation was made without any intention of concealment. It was submitted that the Directors of the assessee company are technical persons not knowing the intricate provisions of the Act but are dependent on the advice of professionals for preparing income tax retur .....

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..... pointed out before the Assessing Officer that it has been incurring losses since the year 2003 due to the market forces. Considering the entirety of the circumstances, in our view, the impugned disallowance on account of depreciation is a mistake, and does not invite the provisions of section 271(1)(c) of the Act. 7. In the result we set aside the order of the CIT(A) and direct the Assessing Offi .....

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