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2012 (9) TMI 38 - AT - Income TaxValidity of reassessment proceedings of AY 02-03 – excess depreciation on intangible assets namely trade and marketing network rights - inadmissible depreciation on goodwill – AO in view of the amendment made in the relevant provisions of the Act allowed depreciation on asset namely trade and marketing network rights for AY 01-02 u/s 143(3), which had been withdrawn by assessee in its revised return – in assessment u/s 143(3) for A.Y. 2002-03 depreciation allowed as claimed by the assessee without reducing the depreciation already allowed in trade and marketing network rights in the A.Y. 2001-02 – same followed in assessment for AY 04-05 i.e. depreciation claimed without deducting the amount of depreciation already allowed in A.Y. 2001-02 Held that:- It is seen that in both the above AYs the assessee has claimed excess depreciation on trade and marketing network rights. Also, even in response to notice issued u/s 148, the assessee has filed the returns on the same loss as determined by the A.O. in the AY 2002-03 and 2004-05 without reducing the excess claim of depreciation claimed by the assessee in the original returns filed by him. Thus, there was an omission and failure on the part of the assessee to disclose fully and truly material facts for the above assessment years with regard to excess depreciation claimed. A.O. was justified in initiating/completing the proceeding u/s 147/148. Depreciation in respect of intangible assets such as brands, formulations, patents and marketing distribution network – dis-allowance – Held that:- Since the same has been allowed by Tribunal in earlier year, hence A.O. is directed to allow the same after reducing the depreciation already allowed in A.Y. 2001-02 from the WDV shown by the assessee for the year under consideration – Decided partly in favor of assessee.
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