2015 (6) TMI 810

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..... of record that for AY 2006-07 and 2007-08, the assessments were completed under Section 143(3) after due enquiries were conducted by the AO. There is nothing on the record to suggest that those were either erroneous or based on premises which did not disclose relevant details. The revenue’s attempt in reopening the assessment of subsequent year 2009-10, by relying upon statement of one of the sub- .....

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..... e assessee provides online lottery services on behalf of Nagaland Government and for this purpose it had appointed distributors and subdistributors. The business model, inter alia, included provision of gaming solution which enabled the customer to access the scheme. In its return for AY 2008-09, the assessee claimed depreciation to the extent of ₹ 84,90,098/-. The AO disallowed this on the .....

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..... the material available on record, Following facts clearly emerge : a. The assets qua which the depreciation is claimed were not purchased during this year, but in earlier years. Purchases and depreciation thereon have been allowed in earlier years. b. It is undisputed that they were purchased in earlier years i.e. in A.Y. 2006-07 and 2007-08 besides depreciation was allowed and the assessmen .....

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..... in that case assessing officer ought to have disallowed it. Under these circumstances we are of the view that the impugned assets were used for the purpose of the assessee s business, therefore, depreciation is to be allowed. We find force in the argument of ld. Counsel for the assessee that assuming worst against the assessee the assets being the part of the existing block of assets on such presu .....

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..... at those were either erroneous or based on premises which did not disclose relevant details. The revenue s attempt in reopening the assessment of subsequent year 2009-10, by relying upon statement of one of the sub-distributors also failed because the said concern, M/s Best Company, in fact confirmed the assessee s contention. Given the factual nature of these findings, the Court is of the opini .....

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