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2006 (9) TMI 132 - HC - Income TaxNotices issued under section 148 - We may note that AO has recorded an additional ground for reopening the assessment, namely, excess depreciation has been allowed on account of failure to deduct the capital subsidy from the written down value of fixed assets while claiming depreciation - The assessee in its objection to the reopening of the assessment has clearly stated that the capital subsidy received has in fact been deducted from the W.D.V. of fixed assets while claiming depreciation. It appears that the explanation given by the assessee is accepted by the Revenue, because, neither in the order rejecting the objections raised by the assessee, nor in the affidavit in reply and not even before this court, the Revenue has pressed the ground for reopening the assessment on account of excess depreciation. Thus, the only ground on which the assessments are sought to be reopened in all the years is that the expenditure/loss incurred at the Bombay office cannot be allowed as there is hardly any activity from the Bombay office of the assessee. In our opinion, the reopening of the assessments based on the above ground which is totally vague and devoid of any substance cannot be the basis for reopening the assessments. – Notices are quashed
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