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2016 (10) TMI 1285 - GUJARAT HIGH COURTReopening of assessment u/s 147 - disallowance of depreciation - amount of deduction related to the entire previous year at the specified rates however, the assessee company had come into existence only with effect from 30.08.2003 and therefore,proportionately the deduction for the period prior to 30.08.2003 which comes to ₹ 32.39 Lakhs (round off) had to be disallowed - HELD THAT:- AO in the original order of assessment dated 28.12.2007 had after scrutinizing the return allowed depreciation of ₹ 89.92 Lakhs. Thus, this issue was accepted by the Assessing Officer during the original assessment proceedings, may be without specific queries and recording of reasons for accepting the full claim. Nevertheless, in view of the full disclosure by the assessee and the declaration made in the return itself, it cannot be said that the assessee had failed to disclose true and full material facts. Claim towards subscription charges made - period for the expenditure was for 12 months, 11 months out of which pertained to subsequent year. Accordingly such expenditure could not have been claimed during the year under consideration in its entirety. Proportionately, therefore expenditure of ₹ 32,083/= had to be disallowed - HELD THAT:- In this respect, the assessee had in the return itself claimed such sum of ₹ 35,000/= by pointing out that the same was towards subscription charges for the period between 01.03.2004 to 28.02.2005. Here also thus, there was full disclosure on part of the assessee. If the assessing officer was of the opinion that a part of the claim did not fall within the relevant period; during the original assessment, he could have disallowed the same. Not having done so, reopening beyond a period of four years would not be permissible. One – Deviyani Tex Chem had issued a debit note towards interest on late payment by the assessee company - These charges did not pertain to relevant period and therefore could not have been claimed in the present assessment year - HELD THAT:- The assessee had pointed out that alongwith the return of income, the assessee did produce a debit note. It was from this very note that the assessing officer was drawing an inference that the claim of expenditure which did not pertain to the year under consideration was made and there was clearly no failure on part of the assessee to disclose true and full facts. Interest expenses did not fall during the year under consideration and was therefore, not allowable - HELD THAT:- In this case also, the assessee had not only shown full figures in the account, such issue was also examined by the assessing officer during the original assessment. Thus can be seen from the letter dated 05.01.2007 written by the assessing officer to the assessee under which he called for multiple details - not only had the assessee disclosed full facts, the claim was also examined by the assessing officer during the original assessment and he made no disallowances in the order of assessment. The fact that he did not assign any reason for the same would be of no consequence. Legal and license fees charges - It pertains to an amount which the assessee had paid to the Director General of Foreign Trade by way of penalty - HELD THAT:- In response to such a query, the assessee had submitted ledger extract of legal and license fees which contained the details of payment of ₹ 1.10 Lakhs towards penalty for the license. Thus, the claim was processed by the assessing officer during the original assessment. Reopening of the assessment would not be permissible even with the aid of the explanation to Section 147 of the Act. The impugned notice is therefore set aside. The petition is allowed and disposed of.
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