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2014 (7) TMI 469 - AT - Income TaxAssessment u/s 147 of the Act - Reasons properly recorded – Notice u/s 148 of the Act – Held that:- The assessment had already been made u/s 143(3) of the Act - the re-opening has been made after expiry of four years from the end of the relevant assessment year and, therefore, the validity of re-opening has to be examined within the ambit of proviso to section 147 - It is from the “reasons recorded” alone that the AO can to assume the jurisdiction u/s 147, for re-opening the case - the “reasons recorded” should be such, that it should provide a live link nexus between the material brought on record and the income escaping assessment - the claim of depreciation on the assets, has been completely set out in the balance sheet and in the income and expenditure account filed by the assessee along with the return of income, which has also been examined by the Assessing Officer in scrutiny proceedings. There was no failure on the part of the assessee to disclose fully and truly, relevant material facts on this score - the claim made by the assessee with regard to depreciation in the computation for the purpose of section 11, is not a false claim as it has also been described in Commissioner of Income-Tax Versus Institute of Banking [2003 (7) TMI 52 - BOMBAY High Court] - the depreciation on the fixed assets has to be allowed on commercial principles even if the capital expenditure on the same has been held to be application of income under section 11 - there are absolutely no details as to which fact or material was not disclosed by the Petition that lead to its income escaping assessment - There is merely a bald assertion in the reasons that there was a failure on the part of the petitioner to disclose fully and truly all material facts – thus, the order of the CIT(A) is upheld – Decided against Revenue.
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