ITO Vs. TOLARAM PHUSARAM

JUDGEMENT

(1.) The appeal filed by the department and the cross-objection filed by the assessee are directed against the order passed by the Commissioner (Appeals), dated 12-9- 1995, for the assessment year 1981-82.

(2.) In the appeal, the only grievance of the department relates to the cancellation of penalty of Rs. 47,100 under section 271(1)(c) of the Act. The facts related to this case in brief, are that the assessee purchased a truck on 10-3-1981 and claimed depreciation thereon in the revised return. The assessing officer, however, held that the truck was not used for the business of the assessee during the period and, therefore, he did not allow the claim of the assessee for depreciation. However, in the subsequent year, the claim for depreciation was allowed by the assessing officer. In the meanwhile, the assessing officer initiated penalty proceedings under section 271(1)(c) of the Act as, according to him, the assessee had made false claim of depreciation on truck which was not used during the accounting period. The penalty was levied after considering the objections of the assessee with the prior approval of the Deputy Commissioner.

(3.) In the cross-objection, the assessee merely supported the order passed by the Commissioner (Appeals). Since we have already confirmed the order passed by the Commissioner (Appeals), the cross-objection filed by the assessee has become infructuous. Accordingly, we dismiss the same as having become infructuous.