AMBIENCE HOSPITALITY PVT LTD

The present appeal under Section 260A of the Income Tax Act, 1961 . (for short, the Act) impugns order dated 12th August, 2011 passed by the Income Tax Appellate Tribunal (Tribunal, for short) upholding the levy of penalty by the Assessing Officer and reversing the order passed by the first Appellate Authority. .

It is not disputed that that the appellant-assessee had claimed depreciation @ 10% on land. Explanation of the assessee is that there was a mistake or error by the officers in-charge of the accounts and responsible for looking after tax laws. It is submitted that claim made was bona fide and mere rejection of a claim should not entail penalty of concealment. It is stated that the return for the next assessment year, i.e. 2008-09 was filed on 27th September, 2008 and in the said return, depreciation was not claimed on the land. .

It is obvious that the assessee had furnished accurate particulars in the return for assessment year 2007-08. Claim for depreciation on land was wrong. Depreciation on land cannot be claimed. This is a well settled principle, and not a debatable question/proposition. It is an accepted position, that the appellant assessee did not revise the return even when return for Assessment Year 2008-09 was filed. The explanation of the assessee that the claim was a bona fide error has been examined by the Tribunal and it was found that the assessee has not been able to discharge the onus placed under the explanation to Section 271(1) (c) of the Act. .

Keeping in view the factual matrix and reasoning given by the Tribunal, we are not inclined to interfere with and entertain the present appeal under Section 260 A of the Act. .

The appeal is dismissed. . . . SANJIV KHANNA,J . . . . . . . R.V.EASWAR, J . DECEMBER 02, 2011 . Vg/NA . . . $ 46 .