COMMISSIONER OF INCOME TAX Vs. SPAN HOLDINGS LTD.

JUDGEMENT

(1.) THE Tribunal, Delhi Bench 'A' in ITA 3/Del/2002 relevant for the asst. yr. 1993 -94.

(2.) FOR the relevant assessment year, the assessee filed its return claiming depreciation of Rs. 50,000 in respect of bio - gas plant purchased from M/s Western Paques India Ltd. The claim was accepted by the AO in the assessment under s. 143(3) of the Act. Subsequently, a notice was issued under s. 148 of the Act on the basis that the depreciation claimed was not as per law and facts. The assessee participated in the reassessment proceedings. Written submissions were also filed before the AO. It appears that without giving any reason the AO disallowed the entire depreciation of Rs. 50,000. Feeling aggrieved, the assessee preferred an appeal, which was taken up for consideration by the CIT(A). In the meanwhile, the AO also initiated penalty proceedings under s. 271(1)(c) of the Act. The Jt. CIT imposed a penalty on the assessee against which an appeal was filed by the assessee.

(3.) IN the appeal against the penalty proceedings, the CIT(A) recorded several findings in favour of the assessee, which have been mentioned in para 5 of the impugned order of the Tribunal. In the appeal, the CIT(A) held in favour of the assessee and set aside the penalty proceedings. Feeling aggrieved, the Revenue preferred an appeal before the Tribunal, which has led to the impugned order being passed.