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2014 (9) TMI 270 - HC - Income TaxNotice issued for reopening of assessment u/s 148 – Notice issued after four years – Change of opinion - Reason to believe – Excessive claim for bad debts and depreciation on equipments leased - Held that:- It has been already decided in Commissioner of Income Tax v/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA] that reason to believe that income chargeable to tax has escaped assessment would not mean a mere change of opinion - the reasons recorded for issuing the notice is with regard to excessive claim for bad debts and depreciation on equipments leased to RESL for AY 1998-1999 - no objection were raised by the Petitioner Bank to the grounds in support of the notice relied upon by the Revenue – Petitioner Bank is aware and cannot dispute failure to disclose truly and fully material facts necessary for assessment - it will comes from a party seeking to invoke extra ordinary writ jurisdiction of this court to make a grievance of the reasons not indicating failure to disclose truly and fully all material facts necessary for assessment - The knowledge of the failure on the part of the Petitioner Bank is evident in its affidavit in rejoinder. The Petitioner Bank had made a claim for bad debts in its Return of Income without having taken into account the orders passed on 2nd March 1998 u/s 154 of the Act for the AY 1995-96 as the same, was subject to change in view of the further appeal - There is no merit in the submission that there was no full and true disclosure about the equipments being put to use - The equipment in question was windmill - Karnataka Electricity Board had issued a certificate that the windmill was connected to the grid on 31st March 1998 - Once the windmill was connected to the grid, it started contributing to the production of electricity- A windmill is put to use when it connected to the grid - The confirmation of Karnataka State Electricity Board is clear - there is no failure to make a full and true disclosure by the Petitioner - the certificate of Karnataka State Electricity Board was before the Assessing Officer while making the assessment under Section 143(3) of the Act and forming an opinion that the equipments were put to use on 31st March, 1998 - the ground that the equipments were not put to use on 31st March, 1998, is a mere change of opinion - the notice seeking to reopen the assessment on the ground of depreciation is merely a change of opinion on the part of the AO – the notice issued for the aspect of bad debts is upheld whereas the part dealing with the depreciation is liable to be set aside – Decided partly in favour of assessee.
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