TMI Blog2009 (9) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... ds to be corrected. The proceedings for reopening of assessment on the ground of income escaping assessment is an exception to the finality of the proceedings arrived at u/s 143(3) during the regular assessment proceedings of the assessment years. The facts clearly show that since this very issue of the expenditure being treated as revenue or capital with respect to the expenditure incurred in the lease hold premises was dwelt upon by the AO. 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, shows that there is no new material for reopening of the assessments and the officer issuing the notices in fact relies upon the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-3-2005 on total loss of ₹ 5 ,36 ,51 ,509. 2. It is seen from records that the assessee-company has claimed lease rent of ₹ 36, 73, 585 and claimed leasehold improvements at ₹ 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 ₹ 64 ,44 ,733 towards renovation of premises of the building used for research and development and office premises and such building was not owned by the assessee, however, the same building was taken on monthly rent from NSIC (National Small Scale Industries Corporation), New Delhi. The assessee occupied two floo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 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 to the reasons aforesaid show that it is the stand of the revenue that the expenses incurred by the petitioner/assessee are not revenue but capital in nature. The scope of the proceedings under section 147/148 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xure 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 11 points. At Point No. 5 the Ld. Assessing Officer specifically directed the petitioner to furnish details of expenditure made on Leasehold Improvement and also obligated the petitioner/assessee to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 mind applied, would lose its finality. 6. In view of the above, the present writ petitions are allowed quashing the impugned notices dated 3-10-2006 issued under section 148 of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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