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2017 (1) TMI 1528 - HC - Income TaxReopening of assessment - ‘reasons to believe’ - Held that:- In the absence of any tangible material, which can be the only basis for reopening a completed assessment, the Revenue could not have issued the impugned notice. As to the applicability of General Motors India Private Limited’s case (2012 (8) TMI 714 - GUJARAT HIGH COURT) the Court is of the opinion that the view taken is sound and an added factor inhibited the Revenue from reopening the assessment. The benefit of carrying forward of depreciation was, in one sense, limited by the pre-existing rule that it can be done for eight years. All that the amendment did with effect from 01.04.2002 was to remove the cap which meant that the previously limited benefit was now not subjected to such restrictions. We also do not agree with the Revenue’s contention with respect to non-application of mind. In view of the interpretation adopted by this Court, the occasion for disallowing itself would not have arisen given that the limit of eight years which existed prior to 2002 had been done away with on account of the amendment. This contention too is, therefore, rejected.
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