Law:

Section:

Section 271(1)(c) of the Income-tax, Act 1961 - Penalty - For concealment of income - Assessment year 1975-76 - Assessee company was a partner in 'A' agency and also in a registered firm - It took over business of said registered firm alongwith certain movables at double its written down value and also land and building of 'A' agency at Rs. 16.50 lakhs and claimed depreciation thereon - On enquiry, assessee explained before ITO that he had put claim of depreciation for building on basis of valuer's report which included cost of superstructure and that of land as well and that depreciation on movable assets was made on basis of price of assets mutually agreed between assessee and retiring partners of firm - ITO rejected assessee's claim of depreciation on land on ground that cost of asset shown by assessee was not acceptable and restricted assessee's claim of depreciation on movable item to written down value of such assets - Thereafter he imposed penalty under section 271(1)(c) - Tribunal deleted said penalty - Whether since assessee had not claimed entire sum of Rs. 16.50 lakhs for only superstructure but had claimed it for building as well as land and had given break up of price of superstructure and land on basis of valuer's report and had also given particulars of items regarding movables, their original price and written down value, it could not be said that there was any concealment of material particulars from ITO during proceedings - Held, yes - Whether, therefore, Tribunal was justified in deleting penalty imposed on assessee - Held, yes FACTS The assessee was a private limited company which joined as a partner with 'A' Agency. At that time it was owing a building which was used by a registered firm. Later, the assessee become a partner with 25 per cent share and took over the business of the registered firm along with furniture, fixtures and utensils at double their written down value and the land and building of 'A' Agency at Rs. 16,50,000. In its return of income the assessee claimed depreciation on the assets acquired by it from the said firm. It was stated by the assessee before the ITO that the price of the land and building was arrived at on the…

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