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2023 (9) TMI 497 - GUJARAT HIGH COURTReopening of assessment u/s 147 - assessment beyond a period of four years - Reason to believe - as per revenue assessee claimed excess depreciation against allowable depreciation - petitioner is not entitled to get the remaining additional depreciation on new plant and machineries put to use for less than 180 days in the preceding previous year - HELD THAT:- On perusal of reasons to believe indicate that on verification of Annexure “F” of the Tax Audit Report and the notes thereto, it was found that the assessee had not quantified the amount of additional depreciation @ 10% on the eligible assets purchased in the preceding year and had made passing remarks without substantiating its claim. What is evident is that the claim for reopening the assessment has been based on the very annexure of the audit report which was available to the revenue in the exercise that was carried out during the scrutiny assessment. The reason to believe therefore cannot be said to be based on any new of fresh tangible material and cannot therefore be used as a tool to reopen the assessment proceedings. What is also evident from the exercise of the scrutiny assessment carried out in the case of the petitioner is that the assessee has been claiming additional depreciation at the rate of 20% on the eligible plant and machinery by virtue of the provisions of Section 32(1(iia). The assessment has been reopened beyond a period of four years and it is not a case where it can be said that the assessee has failed to disclose fully and truly all material facts necessary for his assessment. The tax audit report specifically stated that the balance of additional depreciation pertaining to eligible assets has been claimed and a schedule was annexed. A detailed questionnaire was sent to the petitioner which was answered including the question on the claim of depreciation. A specific query was raised into the claim made by the petitioner on higher depreciation on motor vehicle under section 32 of the Act. All these lead to a circumstance to suggest that during the course of original proceedings, the claim of the depreciation allowance as made by the Assessing Officer was examined and after considering the Return of Income, Tax Audit Report and other submissions to the questionnaire that the Assessing Officer had restricted his exercise only to the issue of allowability of higher depreciation on motor vehicle. Moreover, if in the perception of the Assessing Officer, the report was wanting for details then information could have been called for but couldn't have been taken as a cue for exercise of jurisdiction under Section 148 - Decided in favour of assessee.
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