2020 (7) TMI 539 - ITAT DELHI

Reopening of assessment u/s 147 - Notice after four years - notice barred by limitation - CSR expenditure allowability - HELD THAT:- When the issue is covered in favour of the assessee on merits by the order of the jurisdictional High Court reopening on that issue does not survive.Thereafter referred plethora of the judicial precedents and held that there was no ‘non disclosure’ on the part of the assessee. Even otherwise on our examination of the facts and the assessment order, we find that with respect to the CSR expenditure the AO himself refers to the details of ‘other expenses’ filed during the assessment proceedings.

For prior period expenditure also the AO refers to the details filed and disallowance made during the regular assessment proceedings. With respect to the employee’s contribution fund the AO refers to the information already available with the return of income. Disallowance u/s 14A was merely to correct the incorrect computation in the original assessment proceedings.

With respect to the deprecation on computer software, AO has changed his opinion with respect to the rate of depreciation. He merely applies 25% rate of depreciation instead of 60% as applied in original assessment proceedings. It is apparent that the AO has not pointed out that what facts were not disclosed by the assessee. AO also not brought on record any specific information, which the assessee has failed to disclose in the original return.

No infirmity in the order of the CIT (A) in stating that reopening is barred by limitation and the period of six years for reopening is not available to the assessee. CIT (A) is also correct in deciding that in absence of any failure on part of the assessee, extended limitation period of six years cannot be available to the ld AO; therefore, the reassessment order is passed beyond limitation. No infirmity, as argued by CIT DR, in the order of ld CIT (A). In absence of any failure on the part of the assessee, accordingly, we dismiss the appeal filed by the AO on the limited issue that order passed by the ld AO is barred by limitation. Ground No. 1 is dismissed.