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2018 (1) TMI 1586 - AT - Income TaxReopening of assessment u/s 147 - validity of reason to believe - claim of depreciation on computer accessories - as per CIT AO in the original assessment order considered the issues which were the subject matter of reassessment order under section 143 read with section 147 - HELD THAT:- There is no question posed by the Assessing Officer in the course of original proceedings as regards the eligibility of depreciation of computer accessories. The assessment order under section 143(3) also does not speak anything about depreciation claimed on computer accessories. There is nothing on record to suggest that there was examination by the Assessing Officer in the course of original assessment proceedings whether the asses see is entitled to depreciation on computer accessories at the rate of 60 per cent. There was no conscious opinion formed by the Assessing Officer while completing the original assessment under section 143(3) of the Income-tax Act to allow the claim of depreciation on computer accessories at the rate of 60 per cent. Since AO has not examined the issue, it cannot be stated that he had formed an opinion as regards the allowability of depreciation on computer accessories at the rate of 60 per cent. Since no opinion on the issue was formed by the Assessing Officer, the reopening of assessment cannot be stated to be a mere change of opinion. We uphold the reopening of assessment as valid. Commissioner of Income-tax (Appeals) is not justified in cancelling the reassessment. Technical know-how expenditure and royalty termination fee, whether it is to be allowed as revenue expenditure or capital expenditure and whether disallowance can be subject matter of reassessment has to be necessarily examined by the Commissioner of Income-tax (Appeals).It is for the Commissioner of Income-tax (Appeals) to conclude whether the additions are warranted on these three issues. - Decided in favour of revenue.
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