- (1.) The present appeal is filed by the assessee against the impugned order dated November 28, 2014, passed by the Income-tax Appellate Tribunal, Lucknow, in I.T.A. No. 125/LKW/2012 for the assessment year 2006-07. On March 25, 2015, the appeal was admitted by this court on the following substantial question of law : "Whether, in the facts and in the circumstances of the case, the levy of penalty under section 271(1)(c) is justified or not ?"
(2.) The brief facts of the case are that the appellant-assessee is a private limited company. During the assessment year 2002-03, the assessee was engaged in the construction of multiplex theatre but the same could not become commercially operational and functional even after the "trial runs". So on November 7, 2002, the assessee has filed the return showing nil income where no depreciation was claimed on capital expenditure. But the Assessing Officer suo motu has allowed the depreciation by taking the view that the "trial runs" having been carried out by the assessee, so the project is complete.
(3.) For the assessment year 2003-04 onwards, the assessee has claimed deduction under section 80-IB(7A) of the Income-tax Act though there was no positive income. Similarly, in the assessment year 2004-05, the assessee has claimed the deduction under section 80-IB(7A) of the Act but the same was denied by the Assessing Officer.;