ITAT quashes Penalty on Depreciation Claim: Section 271(1)(c) Not To be Applied for Honest Mistakes

The ITAT quashed a penalty imposed under Section 271(1)(c) of the Income Tax Act on a depreciation claim, stating that the penalty should not be applied for honest mistakes. The tribunal held that if the assessee's claim for depreciation was based on a genuine misunderstanding or a bona fide error in interpretation, rather than an intention to evade tax, the penalty for furnishing inaccurate particulars of income is not justified.