S. 271(1)(c) [SC] [Favor Revenue] :- Depreciation on non exited assets , Penalty rightly levied.

[S. 271(1)(c)] [Court : Supreme Court] [In favor of revenue]

Citation : [2018] 99 taxmann.com 152 (SC) , Special Leave Petition (Civil) Diary No. 34548 of 2018 

Name of the case :Sundaram Finance Ltd.  v. Deputy Commissioner of Income-tax

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Section 271(1)(c), read with section 32, of the Income-tax Act, 1961 - Penalty - For concealment of income (Disallowance of claim, effect of) - Assessment year 1994-95 - Assessee-company, engaged in business of leasing of assets, purchased air pollution control equipment from company, PE and leased back same to company, PIL - During search conducted upon premises of PE, Assessing Officer found that no such equipment was supplied by PE to assessee and purchase and lease back transaction entered into between assessee and PIL was not a genuine transaction; rather it was simply a case of providing finance to PIL by assessee and, therefore, assessee was not entitled to depreciation on such equipment - High Court by impugned order held that by claiming depreciation on asset/equipment which did not exist or which was never supplied, assessee had not only concealed particulars of its income, but had also furnished inaccurate particulars of income, therefore, penalty under section 271(1)(c) was to be levied upon assessee for furnishing inaccurate particulars and concealment of income - Whether Special Leave Petition filed against impugned order was to be dismissed - Held, yes [Paras 12 and 13] [In favour of revenue]