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2016 (5) TMI 583 - ITAT MUMBAIReopening of assessment - excess claim of depreciation which had resulted from the wrong claim of the brought forward depreciation as against the correct claim - whether it is an apparent arithmetic error or computational error? - Held that:- In the present case to correct a simple apparent mistake which could have been rectified by the AO by exercising his power u/s 154 of the Act, the AO choose to re-open the entire assessment and thus assumed the unlimited jurisdiction and various additions were made apart from the excess claim of depreciation as recorded in the reasons u/s 148(2) of the Act which in our opinion is against the scheme provided in the Act. We find merits in the argument of the ld. AR Mr. Joshi that an effective and efficacious remedy available with the AO was u/s 154 of the Act to rectify the wrong claim by the assessee on account of excess unabsorbed depreciation claim which empowers the tax authorities including the AO to amend any order passed by them with a view to rectify any mistake apparent from the record. In the case of Hindustan Unilever Ltd. vs. Deputy Commissioner of Income-Tax (2010 (4) TMI 206 - BOMBAY HIGH COURT ) the Hon’ble Bombay High court has clearly held that the revenue had an efficacious remedy open to it in the form of a rectification under section 154 for correcting a computational error and consequently recourse to the provisions of section 147 was not warranted. Also excessive claim on account of brought forward depreciation was sought to be rectified by the re-opening of the entire assessment is also against the ratio laid down by the Hon’ble Jurisdictional High Court in the above decision. In the case of J.C. Thakkar vs. CIT [ 1955 (2) TMI 9 - BOMBAY HIGH COURT ] We, therefore annul and quash the re-opening of the assessment u/s 147 of the Act and consequent reassessment order without going into the merit of the case and . - Decided in favour of assessee
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