2002 (11) TMI 235

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..... them Modvat credit by reversing the order-in-original, but had upheld the imposition of penalty of Rs. 1 lakh on them under Rule 173Q of the Rules. The appellants availed Modvat credit of Rs. 5,18,138/- on the capital goods during the period 97-98 and 98-99. They also claimed depreciation of the said amount under Section 32 of the Income-tax Act in their Income-tax Returns filed for the relevant .....

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..... redit which was legally admissible to an assessee, could not be disallowed on the ground that he had claimed depreciation of the amount in his Income- tax Returns also. 3. The Commissioner (Appeals), however, has upheld penalty of Rs. l lakh on the appellants under Rule 173Q for contravention of Rule 57R(8) of the Rules. But in my view, the penalty could not be upheld by the Commissioner (Appea .....

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