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TMI Blog2014 (2) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... lf is discontinued. In the assessee's case, there is no discontinuance of business. In the business, temporary stoppage of manufacturing process would not disentitle from the assessee's claim of depreciation in respect of the said block of assets - Decided in favour of Assessee. - ITA Nos.1891 to 1893/Kol/2010 - - - Dated:- 31-1-2014 - Shri Abraham P. George And Shri George Mathan,JJ. For the Appellant : Shri Soumitra Choudhury, Advocate, ld.AR For the Respondent : Smt. Sucheta Chattopadhyay, ld.JCIT/Sr.DR ORDER Shri George Mathan, Judicial Member: These are three appeals filed by the assessee against the orders of the learned Commissioner of Income-tax (Appeals), Central-II, Kolkata in appeal no.. 183/CC-XIX/CIT(A)- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence whereof the proceeding cannot be initiated u/s. 147/148 of the I.T Act. 4) For that the decision relied by the lower authorities does not squarely apply to the fact of the present case and the number of decisions relied on by the appellant have not been considered in its true perspective which has resulted to arrive at a arbitrary conclusion in confirming initiation of proceeding u/s. 147/148 of the I.T Act, thus the action of the CIT in confirming the AO's finding is completely erroneous, perverse, malafide and illegal. 5) For that the Plant Machinery were under trial run and was ready for use, but temporary suspension of the work due to labour unrest in the mill, and it does not give the long hand to the AO to reopen to assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material facts could not be discovered, it is under no obligation to inform the AO about possible inference that might be raised against the appellant. It was for the officer to raise such an inference in absence whereof the proceeding cannot be initiated u/s. 147/148 of the I.T Act. 4) For that the decision relied by the lower authorities does not squarely apply to the fact of the present case and the number of decisions relied on by the appellant have not been considered in its true perspective which has resulted to arrive at a arbitrary conclusion in confirming initiation of proceeding u/s. 147/148 of the I.T Act, thus the action of the CIT in confirming the AO's finding is completely erroneous, perverse, malafide and illegal. 5) For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the return, so it was a case of change of opinion for which initiation of proceedings u/s. 147/148 is ab-initio- void and illegal. 3) For that the appellant have produced books and evidences from which material facts could not be discovered, it is under no obligation to inform the AO about possible inference that might be raised against the appellant. It was for the officer to raise such an inference in absence whereof the proceeding cannot be initiated u/s. 147/148 of the I.T Act. 4) For that the decision relied by the lower authorities does not squarely apply to the fact of the present case and the number of decisions relied on by the appellant have not been considered in its true perspective which has resulted to arrive at a arbit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpleted u/s. 143(3) of the I.T Act 1961, wherein the assessee had been granted the depreciation on its plant machinery. It was the submission that the original assessments for the assessment years 2003-04, 2004-05 and 2005-06 had been done on 23-03-2006, 26-12-2008 and 23-04-2007 respectively. It was the submission that the notices u/s. 148 of the Act for the assessment years 2003-04, 2004-05 and 2005-06 had been issued on 19-03-2008, 21-07-2008 and 21-07-2008 for the purpose of denying the assessee's claim of depreciation on plant and machinery. It was the submission that for the purpose of re-opening of assessments the reasons recorded by the AO were that the assessee company's mill was under suspension of works since 12-03-2002 and con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the block. If and when there is any sale or liquidation of any machinery, the recoveries on such sale/liquidation go to reduce the cost/WDV of that block. It was the submission that the assessee may be granted the claim of depreciation as claimed. 7. The learned JCIT/DR has vehemently supported the orders of the AO and the ld.CIT(A). 8. We have considered the rival submissions. As it is noticed that the assessee has a good case on merits, we are not going into the issue of re-opening as raised by the assesee. The concept of temporary suspension of manufacturing process does not in any way affect the claim of depreciation in so far as once it is accepted that particular plant and machinery has been put to use by the assessee and su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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