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2012 (4) TMI 148 - AT - Income TaxOrder of Dispute Resolution Panel (DRP) u/s 144C - distinction between a 'null and void' order and an 'illegal or irregular' order - the order was christened as final order though the assessing authority was supposed to issue a draft order first inviting objections of the assessee against the adjustments proposed by the TPO - The assessee treated the said order as the final and filed appeal before the CIT(A) - on the mistake becoming apparent the AO issued a corrigendum stating that the first order to be treated as draft order - the corrigendum issued no legal force - Held that:- The argument that there is no provision in the Act to issue a corrigendum is not proper, as that power is always inherent with any statutory authority. In fact, a corrigendum is even appealable if it is prejudicial to an assessee. In the present case, the corrigendum issued by the assessing authority is not prejudicial. The Assessing Officer was only clarifying the situation. - Decided in favor of revenue. Higher Depreciation - Comparable companies - In Schedule 16 to its final accounts, which provides notes on accounts, the assessee has clarified the significant accounting policies followed by it in the matter of fixed assets and depreciation. It is stated therein that the assessee has provided depreciation on straight-line method. The rates have been adopted on the basis of technical estimates made of useful life of the assets. Accordingly, the assessee has provided depreciation at 33.33% in the case of plant and machinery including computer hardware and software. Furniture and fixtures were depreciated at the rate of 14.29% and motor vehicles at the rate of 20%. Depreciation was provided on office equipment at 20% and air-conditioners at 12.5%. – Held that:- The assessee is in fact not providing technical depreciation influenced by Income-tax Rules No force in the arguments advanced by the assessee company on the question of adjustment of the depreciation factor. - Decided in favor of revenue.
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