Assessee filed its return claiming depreciation on its intellectual property rights. During the course of search proceedings as per the statement u/s. 132(4) director of the company reduced the claim depreciation. AO imposed penalty under S. 271(1)(c) for raising a false claim. On appeal the Tribunal held claim of depreciation being a plausible claim, mere fact that same was withdrawn during subsequent search proceedings, would not give rise to penalty. Followed CIT v Reliance Petro Products (P) Ltd. (2010) 322 ITR 158 (SC) (AY. 2004-05)
PCIT v. Financial Technologies India Ltd. (2019) 112 taxmann.com 398 / (2020) 269 Taxman 33 (Bom.)(HC) Editorial : SLP of revenue is dismissed ; PCIT v. Financial Technologies India Ltd. (2020) 269 Taxman 32 (SC)
S. 271(1)(c) : Penalty-Concealment-Depreciation-Claim was withdrawn in the course of search proceedings-Deletion of penalty by the Tribunal is held to be justified. [S. 32, 132(4), 153A]