Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1910 - ITAT DELHIReopening of assessment u/s 147 - notice beyond the period of four years from the end of the relevant assessment year - Disallowance of depreciation - HELD THAT:- Scope of validity of reassessment proceedings has to be seen with reference to proviso to section 147 as the original assessment was completed u/s 143(3). The ‘reasons recorded’ for reopening the assessment has already been incorporated above. From a bare perusal of the same, it can be seen that AO is referring to the same documents which were placed on record during the course of original proceedings and from there he derives the inference that proportionate amount of depreciation should have been disallowed because certain assets were de-leased which has resulted into reduction of income from rent of these assets and depreciation of assets has been used for less than 180 days. First of all, we find that the issue of depreciation on plant and machinery was specifically asked and enquired upon by the AO in the original assessment proceedings including the rental income received from lease of assets; and in response to that assessee has filed a detailed reply which has already been incorporated above. CIT (A) too has given this finding that this precise issue which has been raised by the AO in the ‘reasons recorded’ has been dealt by the AO in the original round of assessment proceedings. Thus, on the present facts it cannot be held that there is any failure on part of the assessee to disclose fully and truly all material facts relevant for the assessment and without ascribing any such failure on part of the assessee, the reopening u/s 147 is clearly barred by limitation. It is a well settled proposition of law as laid down in the aforesaid judgments as relied upon by the Ld. Counsel that if there is no allegation in the ‘reasons recorded’ that assessee has failed to disclose fully and truly all material facts necessary for assessment, then action u/s 147 after the expiry of four years from the end of the relevant assessment year is unsustainable. - Decided against revenue.
|