Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 486 - ITAT MUMBAIReopening of the assessment under section 147 - Section 80 IB - An order of assessment was passed under section 143(3) - Notice under section 148 - Claimed deduction u/s.801A in respect of the profits of the Goa Unit( Depreciation not claimed resulted in excess deduction ) - Held that:- In the present case there was no tangible material which came into the possession of the AO based on which he can came to the conclusion that there was escapement of income because of the failure on the part of the assessee to claim depreciation while arriving at the profits of the Goa Unit. It has to be, therefore, held that the reassessment proceedings have been initiated purely on a change of opinion. We, therefore, held that the initiation of reassessment proceedings is invalid. Consequently the order of assessment under section 147 is annulled. In the present case the assessee had duly disclosed all facts and the AO while passing an order under section 143(3) of the Act is presumed to have applied his mind to the claim of the assessee for deduction under section 80IA of the Act on profits which was calculated without deduction on account of depreciation. Though on merits of the addition made in the reassessment proceedings which is challenged by the assessee in ground No.2 raised before us, we find that a Full Bench of the Bombay High Court in the case of Plastiblends India Ltd. vs. ACIT [2009 (10) TMI 39 - BOMBAY HIGH COURT] has held that depreciation has to be claimed and the resultant profits arrived at after claiming depreciation will alone qualify for deduction under section 80IA of the Act, in view of the decision on Ground No.1 regarding validity of initiation of reassessment proceedings, we do not consider is necessary to deal with the said issue raised by the assessee in ground No.1 The appeal of the assessee is allowed.
|