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2020 (2) TMI 68 - AT - Income TaxReopening of assessment u/s 147 - addition on account of additional depreciation - objections raised by the assessee were not disposed-off by Ld. AO - HELD THAT:- No infirmity in the order of Ld. CIT(A) in setting aside the reassessment order passed by Ld. AO since the objections raised by the assessee were not disposed-off by Ld. AO either in assessment order or by way of separate speaking order. There was no fresh tangible material in the possession of Ld.AO to trigger reassessment proceedings against the assessee - reassessment proceedings were triggered merely by making certain observations during the course of assessment proceedings of the parent entity without establishing that certain income escaped in the hands of the assessee. It is also to be borne in mind that the original assessment was framed u/s 143(3) on 26/02/2014 and there was complete disclosure of claim of additional depreciation in the financial statements. Perusal of assessee’s financial statements, as place on record, would establish that there was clear disclosure of addition in Plant & Machinery and the claim of additional depreciation was separately shown in the depreciation schedule. After considering the same, Ld. AO chose not to make any additions in this respect. Therefore, revisiting the same issue in reassessment proceedings would tantamount to review of the order, which is impermissible under law. As per assessee’s submissions, it acquired new plant & machinery from the parent entity and in support of the same, it filed copies of invoices clearly mentioning the description of machinery bought by the assessee. The excise duty was charged in the invoices which would make it a case of manufacturing since no excise duty would be applicable in case of old machinery. No investigation, whatsoever, was done by Ld. AO during reassessment proceedings, to rebut the assessee’s claim and no further verification was done. No contrary material was brought on record to fortify the stated additions except making an allegation that the assessee claimed additional depreciation on old machinery. - Decided in favour of assessee.
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