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2018 (8) TMI 988 - HC - Income TaxReopening of assessment - error committed by the original assessing officer (AO) - Prior period depreciation - Prepayment premium on IDFC Term Loan - Excess depreciation on Plant and Machinery - Excess depreciation on the intangible asset “Brand Name” by wrongly adopting the WDV - Held that:- The depreciation Schedule as per the IT Rules was shown to us by the AO as available in the records. It contains the depreciation for plant and machinery and brand name is shown separately in the said Schedule. The AO admits that on a careful scrutiny, definitely, dis-allowance ought to have been made by the person who carried out the original scrutiny assessment under Section 141(3). The learned Senior Counsel for the Revenue, supports the AO and points out that as per the decisions cited by him, even an error committed by the AO would come within the ambit of a re-opening on valid grounds of escapement of income. It is also argued that the allowances were not specifically granted and there is no reasoning available in the order; which alone would reveal a definite opinion having been formed by the AO. True, the AO could have found the wrong claims made by the assessee from the profit and loss account as also the depreciation Schedule filed under the IT Rules. However, obviously, there is no discussion nor is there any finding entered into in the assessment order at Ext.P2. We do not see any of the issues having been discussed by the AO, nor is there an opinion expressed specifically with respect to the issues now sought to be reopened under Section 147. In such circumstances, it cannot be said that there was a mere change of opinion in initiating the reassessment proceedings under Section 147 within the four year period by the new incumbent AO. Decided against the assessee.
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