No penalty u/s 271(1)(c) for disallowed depreciation claim.

The Income Tax Appellate Tribunal (ITAT) ruled that no penalty under section 271(1)(c) would be imposed on the assessee for the disallowance of a depreciation claim. The tribunal found that the assessee did not intentionally make an inaccurate claim, as demonstrated by their voluntary withdrawal of the issue before the Commissioner of Income Tax (Appeals) and the absence of depreciation claims in subsequent years. The ITAT's decision was influenced by the Supreme Court's ruling in CIT vs. Pricewaterhouse Coopers Pvt. Ltd., which stated that penalties should not apply to bona fide, inadvertent, or human errors. The decision favored the assessee. .....

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