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2022 (1) TMI 894 - AT - Income TaxReopening of assessment u/s 147 - expenses claimed on account of repair to kitchen equipments as capital in nature instead of revenue as claimed by the assessee - Notice beyond period of four years - HELD THAT:- As gone through the reasons recorded and noted that the AO has taken the reasons mainly from the audited accounts and the claim made by the assessee of expenses from the computation of income. As gone through the reasons and noted that there is no charge levied by the AO that there is any failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the relevant assessment year 2009-10. Rather, recording of reason clearly states that the assessee has disclosed this fact in the return of income and computation of income as well as during the course of original assessment proceedings. The ld.counsel for the assessee before us also filed the computation of income, depreciation chart and audited accounts which clearly reveals that the assessee has made claim of kitchen equipments repair and replaced during the year written off fully. See FORAMER FRANCE case [2003 (1) TMI 101 - SC ORDER] In the present case the Revenue could not point out any failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for relevant assessment year 2009-10, as the assessee has completely disclosed the facts relating to the claim of expenditure incurred towards repairs to kitchen equipments and furniture by replacing the table top for dosa stone, dining tables and replacement of glasses etc This expenditure is towards stainless steel sheets for replacing the worn out sheets over the dining tables and dosa table tops, glass top etc. In view of the fact that original assessment was completed u/s.143(3) of the Act for the assessment year 2009-10 and notice u/s.148 of the Act was issued on 11.03.2016, which is beyond 4 years, we held that reopening is bad in law and hence, quashed. - Decided in favour of assessee.
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