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TMI Blog2016 (10) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed the assessee’s claim of depreciation in respect of assets given under ‘sale and lease back basis’ for the assessment years 1995-96 to 1999-00 following the judgment of Hon’ble Supreme Court in the case of ICDS Limited v. CIT (2013 (1) TMI 344 - SUPREME COURT ) and the AO was directed to withdraw the corresponding benefit given to the assessee by excluding the value of capital component of the lease rent from the income of the assessee. The Tribunal has also allowed the afore-stated relief for assessment year 2000-01 to 2003-04 in assessee’s own case The Tribunal has also deleted the penalty levied by the AO and as sustained by learned CIT(A) on the disallowance of the assessee’s claim of depreciation in respect of assets given un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called the Tribunal ) reads as under:- 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in upholding the penalty under Section 271(1)(c) of the Income-tax Act,1961 relating to the disallowance of depreciation in respect of assets given under finance lease by treating the lease transaction as finance transaction. 2. Without prejudice to ground no. 1 above, on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in levying penalty on the gross disallowance of depreciation instead of the net disallowance ( i.e. depreciation less capital recovery) disregarding the deduction of capital re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 9,66,01,546/- with respect to assets given on lease during the year also stood disallowed in quantum assessment proceedings vide assessment order dated 20.01.2005 passed by the AO u/s 143(3) of the Act. The learned CIT(A) confirmed the quantum disallowance vide appellate orders dated 07-04-2010 whereby appeal of the assessee was dismissed in quantum proceedings.The penalty proceedings were initiated u/s 271(1)(c) of the Act against the assessee for furnishing inaccurate particulars of the income. The AO issued notices u/s 274 r.w.s. 271(1)(c) of the Act show causing that why penalty should not be levied against the assessee for furnishing of inaccurate particulars of income , wherein the assessee replied that the assessee has filed an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m is decided by the Tribunal in favour of the assessee, the penalty order will not survive. It was submitted that Tribunal has in ITA No. 6991-6994/Mum/2011 vide common orders dated 05.05.2015 in assessee s own case has allowed the claim of the assessee for depreciation on assets given on sale and lease back basis for the assessment year 2000-01 to 2003-04. It was also submitted that the Tribunal in MA.No.420 to 422/Mum/2013 vide common order dated 30.04.2014 and MA.No. 423 424 /Mum/2013 vide common orders dated 11.07.2014 in assessee s own case has allowed the claim of the assessee for depreciation on assets given on sale and lease back basis for the assessment year 1995-96 to 1999-00 following the judgment of Hon ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 423 424/Mum/2013 vide common orders dated 11.07.2014 following the judgment of Hon ble Supreme Court in the case of ICDS Limited v. CIT 350 ITR 527(SC) and the AO was directed to withdraw the corresponding benefit given to the assessee by excluding the value of capital component of the lease rent from the income of the assessee. The Tribunal has also allowed the afore-stated relief for assessment year 2000-01 to 2003-04 vide common orders dated 05-05-2015 in assessee s own case in ITA No. 6991-6994/Mum/2011 . The Tribunal has also deleted the penalty levied by the AO and as sustained by learned CIT(A) on the disallowance of the assessee s claim of depreciation in respect of assets given under sale and lease back basis for the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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