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2012 (9) TMI 333 - HC - Income TaxReopening of assessment - claim for depreciation at the higher rate at 40% - Held that:- In the scrutiny assessment, AO with respect to depreciation claimed has raised a specific query and called upon the petitioner to justify the claim by giving details of vehicles on which depreciation at the rate of 40% was claimed. In reply to such question, the assessee made a detailed representation stating that company had purchased and leased commercial vehicles during financial years between 1.4.1994 to 31.3.1995 and 1.4.1995 to 31.3.1996. Details of such purchases were provided. It was also pointed out that the company was claiming depreciation at the rate of 40% on the commercial vehicle. It was stated that on certain vehicles, the company had claimed depreciation at the rate of 20% having reference to the vehicles purchased by the company during the second half of the year and therefore, half of otherwise available depreciation could be claimed. As the assessee company had placed full facts before the AO in the original assessment itself and also during the course of scrutiny assessment detailed submissions were given as despite commercial vehicles have been leased out, higher rate of depreciation was justified. This is therefore, not a case where income chargeable to tax can be stated to have escaped assessment for the reason of assessee failing to disclose truly and fully all material facts - in favour of assessee.
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