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TMI Blog2014 (3) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... tment supplied the reasons recorded for issuance of such notice which read as under:- "During the year the assessee has claimed total depreciation of Rs.17,38,37,297/- as per Anx.5 enclosed along with the return of income, the assessee company has claimed deprecation of Rs.4,45,94,623/- on meters and capacitors. The depreciation has been claimed @ 100% of the cost. The issue of depreciation has been examined during the course of assessment proceedings for A.Y.2002-03. The assessee is claiming depreciation @ 100% as per Rule 5 Appendix-I, Part-III, 3(iii) B (e) to the I.T. Rules 1962 on the ground that the meters are energy saving devices. The assessee is further of the view that the meters installed for the purpose of reading of energy con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consumer save energy and therefore energy saving device. This view is not acceptable for the reasons mentioned above. In this regard, opinion of an expert Shri Dhiru Pujara, Chartered Engineer also strengthens the viewpoint of the Department. Shri Dhiru Pujara is a Registered Chartered Engineer and Authorised Energy Auditor by the Government of Gujarat. Vide his opinion dated 24.3.2005, (received on 28.3.2005), opined that the meters are simply used to measure the energy flow and are not used as energy saving device. The electronic meters save .8W which comes to Rs.30 per annum which is negligible amount compared to the cost of meter which is Rs.2000 on and average. During the course of assessment proceedings for A. Y. 2002-03, it was als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice was issued by one Shri Y. C. Surti, Assistant Commissioner of Income tax, Circle-4, Surat. The reasons were recorded according to the counsel by one Shri Sanjay Pungalia, Assistant Commissioner of Incometax, Circle-4, Surat. Secondly that in the reasons recorded, there is a reference to assessment order for the Assessment Year 2002-2003. Counsel pointed out that the order of assessment for the Assessment Year 2002-2003 was passed on 31st March, 2005. These are two grounds, on which, he contended that the reasons were recorded later than issuance of notice. 3. In so far as the reasons recorded are concerned, the respondent, in the affidavitinreply, clarified that Shri Y. C. Surti, who was the Assistant Commissioner at the relevant time, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... framed after scrutiny. The issue of depreciation on meters and capacitors therefore was never examined by the Assessing Officer. The question of change of opinion therefore would not arise. As also as per the decision of the Supreme Court in case of Assistant Commissioner of Income Tax vs. Rajesh Jhaveri Stock Brokers P. Ltd. reported in [2007] 291 ITR 500 (SC), reopening in such a case would be permissible. 7. Counsel for the petitioner however raised two additional contentions. Firstly, in terms of Section 151 of the Act, sanction of the Competent Authority was not obtained before issuing notice and that subsequently, the issue of depreciation on meters and capacitors has been decided in favour of the assessee. However, neither of theses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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