Amruta Organics Pvt. Ltd vs. DCIT (ITAT Pune)
The assessee filed a return declaring a loss of Rs. 16 lakhs in which it
had made a wrong claim of depreciation. The AO disallowed the claim and
levied 100% penalty which was upheld by the CIT(A). Before the
Tribunal, the assessee claimed that its’ Directors were technical
persons not knowing the intricate provisions of the Act but were
dependent on the advice of professionals for preparing income tax
returns. It claimed that it had committed a bona fide mistake and that
there was no intention to evade taxes. HELD by the Tribunal upholding
the plea:
"A mere mistake in making of a claim in the return of income would not
ipso facto reflect concealment or furnishing of inaccurate particulars
of income in terms of s. 271(1)(c). The wrong claim of depreciation
cannot be said to be made with an intention to evade taxes in as much as
even after the disallowance of depreciation, the resultant income of
the assessee remains a loss. The assessee had been incurring losses
since the year 2003 due to the market forces. Considering the entirety
of circumstances, the claim on account of depreciation was a mistake,
and did not invite the provisions of s. 271(1)(c)"
CA SHIVA SHANKARA R. SHETTY
CHARTERED ACCOUNTANT
Mobile: +91 9035846043 Email: ca.srshetty@icai.org
www.casrshetty228359.in
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