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2014 (9) TMI 8 - HC - Income TaxReopening of assessment u/s 147/148 – Reason to believe – True and full disclosure of necessary facts - Held that:- The notice is issued after a period of almost nine years from the end of the relevant AY i.e. 1993-94 - the order of the Tribunal dated 25th October 2002 was dealing with appeal for block assessment i.e. 1st April 1986 to 1st August 1996 - the scope of regular assessment is to ensure that there is no undue payment of tax while block assessment is only to assess the undisclosed income - the question of rate of depreciation cannot be subject of examination in block assessment as otherwise, there would be no finality to the regular assessment already completed prior to the search. Following the decision in ITO v/s. Murlidar B. Deo [1964 (1) TMI 5 - SUPREME Court] - a 'finding', can be only that which is necessary for the disposal of an appeal in respect of an assessment of a particular year - The Appellate Assistant Commissioner may hold that the income shown by the assessee is not the income for the relevant year and thereby exclude that income from the assessment of the year - The finding in that context is that that income does not belong to the relevant year - the Tribunal in its order was concerned with an appeal from orders passed in block Assessment and held that the ambit/ scope for assessment for the block period under Chapter XIVB is only to assess the undisclosed income for the block period and not for the total income or loss suffered in the previous year which is subject matter of regular assessment. The reasons in support of the notice do not indicate even remotely that there has been any failure on the part of the Petitioner to disclose truly and fully all material facts necessary for the assessment - all the other conditions precedent to issue of reopening notice u/s 147/148 of the Act have to be satisfied - during the assessment proceeding u/s 143(3) of the Act, the AO called for details relating to the assets available and the claim for depreciation – assessee responded to the same and was subject matter of consideration by the AO inasmuch as he disallowed the claim of 100% depreciation in respect of three items i.e. Semi Conductor, Comber Machine restricting it to 25% - the AO had applied his mind to the depreciation claimed by the Petitioner during regular assessment proceeding – thus, the notice is also not sustainable as being issued on mere change of opinion – Decided in favour of assessee.
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