TMI Blog2010 (8) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... SUPREME Court it was held - reliance placed on the provision of Section 43-A of the Act, which has been inserted by the Finance Act, 2002 with effect from 1.4.2003, which, according to learned counsel for the petitioner, has set at rest all the controversies relating to the claim of depreciation. Since this provision was not available with the assessing authority when the notice under Section 148 of the Act was issued, that the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order – Thus the writ petition stands disposed of - 2595 (Tax) OF 2002 - - - Dated:- 31-8-2010 - Yatindra Singh, Rajes Kumar, JJ. By means of the present writ petition th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been filed on 23.11.2000. The net income of Rs. 82101337/- has been claimed exempt U/s 10A. A perusal of the balance sheet show that the assessee company has not claimed depreciation on the value of Plant Machinery of Rs. 14,56,17,518/- being on a/c of exchange fluctuation. The 25% depreciation on this amount comes to Rs. 3,64,04,380/- which has not been deducted from the income and instead of Rs. 4,56,96,957/- an amount of Rs. 8,21,01,337/- has been claimed exempt u/s 10A resulting in excess claim of exemption during the year and reduction in tax liability. As such, I have reason to believe that an amount of Rs. 3,64,04,380/- has escaped assessment for which the proceedings u/s 147 required to be initiated. Issue notice of U/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leting 10 years of the exemption. He submitted that Section 43-A of the Finance Act has been inserted to remove the anomaly in claiming the depreciation.. Now, to arrive to a cost of plant machinery for claiming depreciation, the written down value has no relevance and the cost of plant machinery would be calculated in accordance to Section 43(3) of the Finance Act and, therefore, whether the petitioner has claimed less depreciation or higher depreciation in the year under consideration, in which the exemption is available, has no relevance for the claim and the allowance of the depreciation in the year when the income would be chargeable to tax. He submitted that having regard to the said provision of Section 43-A the Tribunal has allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner should file objections before the assessing authority so that the assessing authority may consider the objections of the petitioner. He submitted that under Explanation 2 of Section 147 of the Act if no assessment order has been passed on the return filed by the petitioner and the deduction is wrongly claimed, such wrongly claimed deduction amounts to escaped income. Having heard learned counsel for the parties, we have gone through the record. The apex Court in the case of GKN Driveshafts (India) Ltd. (supra) has held as follows : "We see no justifiable reason to interfere with the order under challenge. However, we clarify that when a notice under section 148 of the Income-tax Act is issued, the proper course of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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