ACIT vs. COSMO FILMS LTD

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 552/2012 . ACIT ..... Appellant . Through : Sh. Deepak Chopra, Sr. Standing Counsel with Sh. Harpreet Singh Ajmani, Advocate. . versus . COSMO FILMS LTD ..... Respondent . Through : Nemo. . CORAM: . HON'BLE MR. JUSTICE S. RAVINDRA BHAT . HON'BLE MR. JUSTICE R.V.EASWAR . . . O R D E R . 10.09.2012 . . . The Revenue claims to be aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) dated 23.03.2012 in ITA No. 148/Del/2010, for the Assessment Year 2006-07. It submits that the penalty of Rs.19,62,495/- directed to be deleted/set-aside is not justified in the circumstances. . The assessee had claimed carry-forward of additional depreciation which was not accepted; the Assessing Officer held it to be impermissible. On appeal, the assessee s appeal succeeded eventually before the Tribunal. The Revenue s appeal is pending before this Court. In these circumstances, the Assessing Officer initiated the proceedings and imposed penalty for concealment of income or furnishing of inaccurate particulars thereof. The CIT (Appeals), by order dated 05.10.2011 set- aside the penalty,holding that since the quantum appeal had succeeded in favor of the assessee, the imposition of penalty was not warranted. In the circumstances, the Tribunal upheld the order. . We have carefully considered the materials on record. It appears that the imposition of penalty on the question as to whether additional depreciation claimed for the purpose of carry-forward is a debatable one. Having regard to these aspects, the order of the lower authorities cannot be faulted; the appeal does not raise any substantial question of law and is accordingly dismissed. . . . . . . . S. RAVINDRA BHAT, J . . . . . . . R.V.EASWAR, J . SEPTEMBER 10, 2012 . ajk . . . $ 48 .