Dismissing the appeal  of the revenue the Court held that  the assessee had made a claim to depreciation on the strength of the tax audit report, and furthermore, there was a complete disclosure about its claim under section 80HHC supported by the certification issued by the chartered accountant. Merely because the claim on the merits was not granted, the penalty could not be levied. Followed CIT v. Reliance Petroproducts (P.) Ltd. (2010) 322 ITR 158 (SC). (AY.2011-12)