IN THE HIGH COURT OF DELHI AT NEW DELHI 
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   ITA 1264/2011  
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 AMBIENCE HOSPITALITY PVT LTD   ..... Appellant 
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 Through: Mr.Satyen Sethi and Mr.Arta Trana Panda, Advs. 
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 versus 
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 CIT                 ..... Respondent 
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 Through: Mr.Deepak Chopra, Sr. Standing Counsel. 
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 CORAM: 
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 HON'BLE MR. JUSTICE SANJIV KHANNA 
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 HON'BLE MR. JUSTICE R.V.EASWAR 
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 O R D E R 
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               02.12.2011 
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 1. The present appeal under Section 260A of the Income Tax Act,  1961 
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 (for short, the Act) impugns order dated 12th August, 2011 passed by the Income Tax Appellate Tribunal (Tribunal, for short) upholding the levy of 
 penalty by the Assessing Officer and reversing the order passed by the 
 first Appellate Authority. 
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 2. It is not disputed that that the appellant-assessee had claimed 
 depreciation @ 10% on land. Explanation of the assessee is that there was 
 a mistake or error by the officers in-charge of the accounts and 
 responsible for looking after tax laws.  It is submitted that claim made 
 was bona fide and mere rejection of a claim should not entail penalty of 
 concealment.  It is stated that the return for the next assessment year, 
 i.e. 2008-09 was filed on 27th September, 2008 and in the said return, 
 depreciation was not claimed on the land. 
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 3. It is obvious that the assessee had furnished accurate particulars 
 in the return for assessment year 2007-08. Claim for depreciation on land 
 was wrong. Depreciation on land cannot be claimed. This is a well settled 
 principle, and not a debatable question/proposition. It is an accepted 
 position, that the appellant assessee did not revise the return even when 
 return for Assessment Year 2008-09 was filed.  The explanation of the 
 assessee that the claim was a bona fide error has been examined by the 
 Tribunal and it was found that the assessee has not been able to 
 discharge the onus placed under the explanation to Section 271(1) (c) of 
 the Act. 
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 4. Keeping in view the factual matrix and reasoning given by the 
 Tribunal, we are not inclined to interfere with and entertain the present 
 appeal under Section 260 A of the Act. 
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 5. The appeal is dismissed. 
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 SANJIV KHANNA,J 
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 R.V.EASWAR, J 
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 DECEMBER  02, 2011 
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 Vg/NA 
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 $ 46 
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