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TMI Blog2009 (9) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment are identical for both the years and are reproduced below :- "1. The assessee-company filed return of income on 31-10-2002 showing loss of Rs. 5, 36, 51, 509. The assessment was completed under section 143(3) of Income-tax Act, 1961 on 7-3-2005 on total loss of Rs. 5 ,36 ,51 ,509. 2. It is seen from records that the assessee-company has claimed lease rent of Rs. 36, 73, 585 and claimed leasehold improvements at Rs. 65 ,44 ,733. During the course of assessment proceedings, the assessee-company submitted written submission dated 14-12-2004. 3. The assessee videits letter dated5th December, 2004 submitting that the assessee incurred a sum of Rs. 64 ,44 ,733 towards renovation of premises of the building used for research a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stated so as to keep the premises as restored to good condition or save it from exhaustion or compensation of loss. The repairs in the case of assessee, are meant to altogether change the user by way of expanding its capacity substantially and changeover of its look. The expenditure is certainly capital in nature on which depreciation may be allowed. I have, therefore, reason to believe that the income of Rs. 58, 90, 259 (after deducting depreciation) has escaped assessment. Proposal is submitted to learned Additional Commissioner of Income-tax, Range-4, New Delhi for granting approval to initiate the proceedings under section 147 of Income-tax Act 1961. Sd/- Deputy Commissioner of Income Tax Circle 4(1) , New Delhi". 3. A reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld Improvements. The said query reads as under :- ' 9. Please give details of leasehold improvements written off'. (ii) The Petitioner/assessee vide its Letter dated/reply dated 5-12-2004 (Annexure B) [To Assessing Officer's Letter/query dated 19-11-2004] , at Point No. 10 'Details of Leasehold Improvements Written Off', provided the specific relevant details regarding thereto. (iii) Petitioner/assessee vide letter dated 14-12-2004 (Annexure C) again specifically addressed the issue of 'Expenditure on Leasehold improvements' the reasons which had led it to treat the same as revenue expenditure. (iv) The Ld. Assessing Officer vide communication dated 12-1-2005 (Annexure D) raised certain queries contained in 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emises was dwelt upon by the Assessing Officer. The impugned notices are, therefore, clearly misconceived and bound to be quashed. A reference to the reasons for reopening of the assessments, the italics portions in para 2 above, shows that there is no new material for reopening of the assessments and the officer issuing the notices in fact relies upon the record and the correspondence on the very subject in the regular assessment proceedings. Clearly therefore, the notices are an abuse of the process of law because in the facts, such as those found in the present cases, if harassment to a citizen is allowed, then, the conclusiveness of the regular assessment proceedings will have no meaning because the very issue which was considered and m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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