TMI Blog2002 (3) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... asst. yr. 1990-91. 5. The assessee s appeal being ITA No. 2676/Jp/1994 and assessee s C.O. being 70/Jp/1998 have not been pressed by the learned authorised representative of assessee during arguments and so the same are dismissed accordingly. 6. Now it is only the Revenue s appeal being ITA No. 452/Jdpr/1998 which remains to be considered and decided on merits by us. 7. We have heard the arguments of both the sides and also perused the records 8. The Revenue has raised three grounds of appeal but they all constitute single issue disputing the learned CIT(A) s finding that the initiation of proceedings under s. 148 was invalid and, in turn, quashing the assessment order by AO. The learned Departmental Representative of Revenue has co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings under s. 148 which were: (i) Depreciation wrongly claimed on A.C. (ii) Depreciation wrongly claimed on truck. As regards the first reasons, the learned authorised representative of assessee has contended that the A.C. was not purchased during previous year relevant to assessment year under consideration, and so the first reason recorded by AO is non-existent. Regarding the second reason, he has contended that the truck was purchased in February 1990, and the assessee s accounting year is financial year. It has been contended that the AO passing the earlier assessment order, himself admitted the purchase of truck and on that account due to difference of opinion, he added the cost of truck purchased in the income. It has also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s entire transaction was detected by Shri Devendra Raj Singhvi and it was in his notice but he died due to murder before survey. It has been contended that he was a partner also and brother of other partner. It has been contended that during survey, the statement of Shri Anil Kumar was recorded wherein Anil Kumar stated the use of this truck and giving it on hire. The learned authorised representative of assessee, alternatively, has contended that even assuming AO s contention to be correct, then assessee s plea is regarding passive user of the truck. He has contended that when the truck is kept ready for use, then also the assessee is entitled to depreciation on truck. He has contended that the reason of AO recorded in this regard was vagu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact existed no belief or that the belief was not a bona fide one or was based on vague, irrelevant and non-specific information. To that limited extent, the Court may look into the conclusion arrived at by the ITO and examine whether there was any material available on the record from which the requisite belief could be formed by the ITO and further whether the material had any rational connection with or alive link for the formation of the requisite belief." In CIT vs. Laxmi Debi Mehta (1993) 70 Taxman 399 (Cal), the Hon ble Calcutta High Court has held that as first assessment had failed to result in a valid assessment due to lapse on the part of IT authorities, they were disentitled to initiate fresh assessment proceedings on identic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
