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2016 (9) TMI 1329 - ITAT MUMBAIReopening of assessment - whether the assessee has rightly accounted for claim received from the Insurance Company for plant and machinery and fixed assets or the same should have been accounted for in AY 2005-06 and 2006-07? - Held that:- Since the assessee did not have break up of the claim received from the Insurance Company in the assessment years 2005-06 and 2006-07 which was finally received in AY 2007-08 and this was correctly accounted for by the assessee. The disallowance of depreciation by the AO by reopening the assessment in assessment year 2005-06 has resulted into double disallowance one by the assessee suo mottu in assessment year 2007-08 and secondly by the AO in assessment year 2005-06 and 2006-07 which is not correct in terms of provision of the Income Tax Act, 1961 as the same disallowance cannot be made twice. The depreciation has to be allowed in one year. Moreover, while framing the assessment u/s 143(3) read with section 147, the AO has not carried out any rectification in respect of assessment year 2007-08 or nor any such direction was given by ld.CIT(A). In view of this, it would be reasonable and proper if the disallowance as made by the AO in AY 2005-06 is deleted. - Decided in favour of assessee.
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