TATA MOTORS LTD ( FORMERLY KNOWN AS TATA ENGINEERING & LOCOMOTIVE COMPANY LTD),MUMBAI vs. JCIT (OSD) 2 (1), MUMBAI

The aforesaid appeal has been filed by the assessee against impugned order dated 14.10.2009, passed by Ld. CIT(Appeals)-6, Mumbai in relation to the penalty proceedings u/s. 271(1)(c) for the A.Y. 1998-99.

The assessee is mainly aggrieved by levy of penalty on amount of disallowance of depreciation of Rs.5,99,304/- on the assets given on lease to the Andhra Pradesh State Electricity Board. Before us, the learned senior counsel, Shri Dinesh Vyas, submitted that in the quantum proceedings, this Tribunal in vide order dated 06.01.2017 has deleted the said disallowance of depreciation of leased assets. From the said order he pointed out that this issuehas been elaborately discussed by the Tribunal while deciding the appeal for A.Y. 1997-98, vide para 5 to 5.3, which has been followed in A.Y. 1998-99. Whence the addition itself stands deleted the levy of penalty u/s. 271(1)(c) has no legs to stand.

The learned DR also admitted that in quantum appeal this issue stands decided in favour of the assessee.

After considering the aforesaid submissions and on perusal of the Tribunal order in the assessee’s own case in the quantum proceedings, we find that the issue of disallowance of depreciation of leased assets has been decided in favour of the assessee and depreciation has been allowed. Accordingly, the penalty levied on said addition/disallowance stands deleted.

In the result, the appeal of the assessee is allowed.