Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 591 - AT - Income TaxValidity of reopening of assessment - significant change in the accounting policy regarding depreciation - Held that:- Following the decision of Hon'ble Jurisdictional High Court in Export Credit Guarantee Corporation of India Ltd Vs, Additional CIT [2013 (1) TMI 517 - BOMBAY HIGH COURT ] we hold that the reopening in this case is proper as the Assessing Officer has exercised the power conferred u/s 147 of fulfillment of requirements in the said section. On merits the assessee has not produced the requisite records and evidence to show the basis on which such a change in accounting policy was taken by the board of Directors. Even the resolution of board of Directors was not produced by the assessee either before the Assessing Officer or before us. Thus, the issue requires a proper verification and examination of the relevant facts and records. Accordingly, we set aside the issue on merits to the record of Assessing Officer for deciding afresh after verification and examination of relevant record. The assessee is directed to produce the evaluation report, board’s resolution as well as the approval of the board’s decision in the general body meeting in support of its claim that the change of method of depreciation as well as rate of depreciation is in conformity with the requirement of provisions of Companies Act as well as Accounting Standard. - Decided partly in favour of assessee for statistical purposes.
|