No penalty for Adjustment in book profit due to disallowance of depreciation under MAT provisions

Jubilant Infrastructure Ltd Vs DCIT (ITAT Delhi) The disallowance of depreciation in quantum proceedings in A.Y.2016-17 has also resulted in corresponding enhancement of deduction under section 80IAB by the equal amount. The AO has also allowed the enhanced deduction in the quantum and, therefore, no prejudice was caused to the revenue by such claim. It was thus contended that no malafide can be attributed to the assessee towards such claim and thus no penalty is warranted under normal provisions of Act. It was thereafter pointed out that the adjustment in the ‘book profits’ towards such d...