Court: | High Court of Gujarat |
Head Notes: | Facts of the case The assessee had claimed excess depreciation on land component of the properties. The Assessing Officer did not ascertain the same. However, before the Ld. CIT (Appeals), the assessee had suo motu made submission regarding this. In order to align its books of accounts with MCA notification, the assessee had itself disclosed all the particulars relating to the excess claim to the Ld. CIT (Appeals). Observations of the Court The Hon’ble High Court of Gujarat observed that the assessee had itself surrendered excess claim of depreciation without any prior detection of the Revenue. The assessee had also demonstrated that the excess claim was been made for bona fide reasons. The court also observed that in order to align its books of accounts with MCA notification, the assessee had itself disclosed all particulars relating to the excess claim. Reliance on the decision of the Supreme Court The High Court of Gujarat relied upon the decision of Hon’ble Supreme Court in the case of Dilip N. Shroff vs. JCIT [2007 (6) SCC 329] wherein the court explained the terms “concealment of income” and “furnishing inaccurate particulars” appearing in section 271(1)(c). The Supreme Court had held that in order to attract the penalty under section 271(1)(c), mens rea was necessary as the word “inaccurate” signified a deliberate act or omission on behalf of the assessee. Decision Applying the ratio decidendi laid down by the Apex Court, the Hon’ble High Court of Gujarat held that since the assessee had surrendered the excess claim of depreciation prior to the detection of Revenue of the said claim, there was no deliberate act on the part of the assessee to furnish inaccurate particulars of income. Accordingly, no penalty is leviable upon the assessee under section 271(1)(c). |
Law: | Income-Tax Act |
Section(s): | Section 271(1)(c) |
Counsel(s): | Mr. Varun K. Patel for Appellant and Mr. RK Patel and Mr. Darshan Patel for Respondent |
Dowload Pdf File | Click here to download the file in pdf format |
Uploaded By | Adv. Priyanshi Desai |
Date of upload: | July 22, 2023 |
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