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2015 (8) TMI 619 - HC - Income TaxReopening of assessment - reliance on audit objection - as per AO assessee was not entitled to the depreciation at 30% on motor vehicles and the normal rate of depreciation at 15% was allowable to the assessee being a contractor and therefore, escaped assessment - Held that:- Solely on the audit objection raised by the audit party the assessment is reopened and/or it can be said that the opinion of the Assessing Officer and/or Assessing Officer’s reason to believe that there is an escapement of income is solely based upon the audit objections raised by the audit party and there is no independent formation of the opinion by the Assessing Officer. As observed hereinabove even while sending the proposal / communication to grant the approval for remedial action under section 147 of the Act, the Assessing Officer still had maintained that the audit objection raised by the audit party is not acceptable. Therefore, the formation of the opinion by the Assessing Officer and his reason to believe that there is any escapement of income to the tune of ₹ 1,66,42,284/- for AY 2009-10 has been vitiated. Therefore, in the facts and circumstances of the case, the formation of the opinion by the Assessing Officer while reopening the assessment proceedings and his reason to believe that the income has escaped the assessment has been vitiated and therefore, the reopening of assessment proceeding for AY 2009-10 is not valid and permissible. - Decided in favour of assessee.
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