TMI Blog2014 (11) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... vey proceedings under Section 133A of the Act statement of Managing Director of the petitioner as well as Chartered Engineer who valued the intangible assets were recorded - In his statement the Managing Director stated that he was ready to withdraw 50% of the claim for depreciation for AY 2009-10 and 2010-11 subject to fresh valuation of the intelligible assets - The acceptance of the Managing Director is itself sufficient tangible material for the AO to reopen the assessment for the purpose of considering the assessee's claim with regard to valuation of intangible assets and the claim for depreciation – the notices have not been issued on the basis of change of opinion but on the basis of fresh tangible material obtained during the survey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Product research and development at ₹ 22.73 crores; and (iii) Product design and drawing at ₹ 7.27 crores. On the aforesaid intangible assets the petitioner claimed depreciation of 25% on product research and development and Product design and drawing aggregating to ₹ 7.50 crores. No depreciation was claimed on Goodwill for A.Y. 2009-10 though claimed for A.Y. 2010-11. 4) On 26 December 2012 the Assessing Officer assessed the petitioner's income under Section 143(3) of the Act at ₹ 69.28 lacs after having accepted the claim for depreciation on intangible assets as made by the petitioner. 5) Thereafter, on 4 September 2013 a survey action under Section 133A of the Act was carried out on the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies? Ans. As per my knowledge and the discussion with Mr. Mahesh Khairnar and Mr. Satpute the certificates issued by me were only for the purpose of the future business prospects of the company. As stated earlier I was not Government approved valuer, therefore I have to state that the certificates issued by me cannot be used by the company for claiming any deduction available under Income Tax Act 1961 or Company Act 1956 and for any other Government Agency. Hence, once again I confirm that the claim made by Powerdeal Energy System (I) Ltd., on the basis of my certificate is bogus and not genuine. Q.No.11 : Do you want to say anything else? Ans. Yes. The Certificate issued by me is not admissible for purpose of claiming any deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets is as under:- Asset Rate of depreciation Depreciation (in Rs.) Goodwill 0.00% Nil Product Research Development 25.00% 5,68,25,000/- Product Design Company 25.00% 1,81,75,000/- Total 7,50,00,000/- In this case, scrutiny assessment u/s. 143(3) of the Act for the A. Y. 200910 was passed on 26.12.2011 assessing the total income of the assessee at ₹ 69,28,911/and accepting the claim of depreciation. A survey action u/s. 133A of the Act was conducte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creation of any asset. The assessee has not established that any expenditure is incurred for Research Development and for creation of assets. Subsequently, the valuation of intangible assets have been done by two Govt. approved valuers. These valuers have categorically stated that the assessee has not created any intangible assets. Thus, there is no existence of intangible assets like Product Research Development and Product Design Drawing. Further, Shri Mahesh Khairnar has accepted, in his statement recorded during the survey, that 50% valuation of the intangible assets as nongenuine subject to fresh valuation. Accordingly, he also accepted 50% depreciation of these assets as excessive. It is thus accepted that he has no evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. 9) The grievance of the petitioner is that the impugned notice for the Assessment Years 200910 and 2010-11 are without jurisdiction in inasmuch as the same arises only on account of change of opinion. The Assessment order under Section 143(3) of the Act for A.Y. 2009-10 was passed on 26 December 2012 while Assessment Order under Section 143(3) of the Act for A.Y. 2010-11 was passed on 12 December 2012 by the Assessing Officer. The survey proceedings took place thereafter in September 2013. During the survey proceedings under Section 133A of the Act statement of Managing Director of the petitioner as well as Chartered Engineer who valued the intangible assets were recorded. In his statement the Managing Director stated that he was read ..... X X X X Extracts X X X X X X X X Extracts X X X X
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