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TMI Blog2013 (3) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed in the original proceedings as revenue expenditure is in the nature of capital expenditure. However, as per the proviso to Section 147, unless there is any failure on the part of the assessee to disclose any material fact, the assessment cannot be reopened. See Atma Ram Properties Pvt.Ltd. Vs. DCIT (2011 (11) TMI 51 - DELHI HIGH COURT) if AO had failed to apply legal provisions/section of the Income-tax Act, 1961, the fault cannot be attributed to the assessee - in favour of assessee. - ITA No.3712/Del/2012 - - - Dated:- 15-2-2013 - G. D. Agrawal And I. C. Sudhir,JJ. Fpor the Appellant : Shri Sukhveer Choudhary, DR. For the Respondent : Shri G.S.Srivastava and Shri Saurabh Srivastava, Advocates. ORDER This appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October, 2004. Original assessment was completed under Section 143(3) on 13th December, 2006. Notice under Section 148 was issued on 25th March, 2011 and thereafter, assessment under Section 147/143(3) was completed on 30th December, 2011. The learned CIT(A), vide order dated 30th April, 2012, quashed the reopening of assessment under Section 147/148. Though in the grounds of appeal the Revenue has taken as many as five grounds, however, they are all against the quashing of reopening of assessment. 4. We have heard both the parties and perused the material placed before us. Proviso to Section 147 reads as under:- "Provided that where an assessment under sub-section (3) Provided of section 143 or this section has been made for the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of Designs Drawings were in the nature of giving enduring benefit to the assessee and therefore capital in nature which should have been disallowed and added to the income of the assessee." 6. From the above reasons recorded, it is evident that in the original assessment, the assessee claimed certain expenses which are in the nature of purchase of designs and drawings to be revenue expenditure and the same were disallowed as such. Now, in the opinion of the Assessing Officer, it is in the nature of capital expenditure. Thus, as per the Assessing Officer himself, there is no failure on the part of the assessee to disclose any material fact necessary for assessment. It is a clear case of change of opinion wherein the succeeding As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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