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2012 (12) TMI 4 - AT - Income TaxReopening of assessment u/s 147/148 - period of limitation - effect of block assessment - unexplained cash credit - addition u/s 68 - held that:- In the reasons AO has made a reference to the order of the ITAT wherein it has been observed that such type of income is to be assessed in the regular assessment and not in the block assessment. This observation is in the nature of finding comes within the meaning of section 150 (i) and there was no time limit for issuing a notice u/s 148 in order to give effect to the finding of the ITAT. - If the addition could not be made under the block assessment and the same had to be made in the regular assessment, then it would be unreasonable to say that this income could not be taxed either in the block assessment or in the regular assessment of the assessee. - Decided against the assessee. Claim of depreciation - commencement of business - held that:- the AO’s observations that the machinery was not put to use before 31.3.1995 is not correct. - The independent evidence of several government departments indicating the use of machinery before 31.3.1995 justifies the assessee’s stand that the plant and machinery was put to use before 31.3.1995. Therefore, the AO was not justified in disallowing the depreciation on the plant and machinery. Accordingly, the disallowance made by the AO is deleted. - Decided in favor of assessee.
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