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TMI Blog2014 (4) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... OURT OF INDIA], CIT(A) is not justified in confirming reopening of assessment made by AO u/s 147 of Act - Reopening of assessment made under section 147 is bad in law and the same is quashed - Original assessment order passed under Section 143(3) is restored – Decided in favor of Assessee. - ITA No.8504/Mum/2011 - - - Dated:- 6-12-2013 - SHRI D. KARUNAKARA RAO AND DR. S.T.M. PAVALAN, JJ. For the Appellant : Shri V. Mohan For the Respondent : Shri O. P. Sing ORDER PER DR. S.T.M. PAVALAN, JM; This appeal filed by the assessee is directed against the order of the Ld.CIT(A)-2, Mumbai dated 19.09.2011 for the Assessment Year 2005-06. 2. In this appeal, the assessee has agitated the action of the Ld.CIT(A) confirmin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to AO, the reasons cited for reopening the assessment were, firstly, it came to notice that depreciation claimed by the assessee during the previous year included an amount of Rs.52,26,638/- on account of Terminal depreciation on various kind of assets viz. building, plant machinery, furniture fixtures and vehicles. The claim of the assessee on account of terminal depreciation is wrong as there is no such provision in the IT Act to allow terminal depreciation. The wrong claim made by the assessee resulted in escapement of income of Rs.52,26,638/- from assessment. Secondly, it was noticed that assessee had claimed interest of Rs.43,36,227/- on account of interest known as de-bonding interest on the capital goods being plant and mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he notice of the AO, which is a pre requisite for invoking section 147 for reopening an assessment which has already been made u/s 143(3) of the Act. Therefore, the Ld.CIT(A) ought to have held that the reopening of the assessment u/s 147 of the Act is bad in law and consequently the re-assessment made under section 143(3) r/w section 147 should have been quashed. On merits, the Ld.AR has argued in the similar line of contentions raised before the lower authorities 5. We have heard both the sides and perused the material on record. On the issue of validity of the reopening of the assessment, it is pertinent to mention that the letter dated 19.09.2007 addressed by the assessee to the AO during the assessment proceedings originally framed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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