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2013 (9) TMI 201 - ITAT HYDERABADReassessment u/s 147 - Notice u/s 148 - Reassessment after 4 four years - Held that:- Department has no material to show that the income which is said to have been escaped is on account of failure on the part of the assessee so as to reopen the assessment when the original assessment was completed u/s. 143(3) of the Act. Provisions of section 147 prescribed that no action should be taken u/s. 147 after the expiry of four years from the end of the relevant assessment year, unless income chargeable to tax has escaped assessment for such assessment year by reason of failure on the part of the assessee to make a return u/s. 139 or in response to notice issued under subsection (1) of section 147 or section 148 or to disclose fully and truly all material facts necessary for its assessment for that assessment year. Department was not able to point out applicability of these provisions to assessee's case. Unless these conditions are fulfilled assessment cannot be held to be valid - initiation of re-assessment proceedings for the assessment year 2004-05 by means of notice u/s. 148 dated 25.2.2011 after a period of more than 4 years is clearly barred by time limit - Decided in favour of assessee. Penalty u/s 271(1)(c) - Disallowance of depreciation on plant and machinery - Held that:- The facts remain that the assessee is having bona-fide belief that it is entitled for depreciation as per the lease agreement and the assets have been duly reflected in the Balance Sheet. The assessee has furnished the entire facts relating to this issue which was not found favourable with the Department. The Revenue authorities rejected the claim of granting of depreciation. It was up to the Revenue authorities to accept or reject the claim of the assessee. Merely because it was rejected, it does not lead to the conclusion that the assessee is liable for penalty - Decided in favour of assessee. Deduction u/s. 80IA - business of manufacturing of pipes for water supply and sewerage scheme and turnkey contractors in infrastructure sector, claimed deduction u/s. 80IA. - CIT allowed the deduction holding that the business of the assessee was that of a developer of infrastructure facility as envisaged in the provisions of section 80IA of the Act. - Held that:- Order of CIT(A) confirmed - deduction allowed.
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