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TMI Blog2016 (6) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... any and return of income filed for the aforesaid two years by the company was selected for scrutiny assessment and show cause notices were issued calling for explanations/details on several issues. The petitioner submitted such details and authorized representative of the petitioner attended the assessment proceedings, thereafter, assessment order was framed. Against such orders, the petitioner preferred appeals before CIT (A), which were partly allowed. Thereafter, the respondent issued impugned notice under Section 148 of the Act, reopening the assessment for both the Assessment Years. In response to the notices impugned, the petitioner filed revised return of income and requested to provide a copy of the reasons recorded prior to the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt along with details of valuation of knowhow in respect of fee received from the assessee. No response was received from the Tarak Chemicals P. Ltd. The Assessing Officer observed that no agreement has been executed between the assessee and Tarak Chemicals P. Ltd. and concluded that this is a colourable device to reduce the profit of the assessee company. Accordingly claim of depreciation @ 25% on the technical knowhow was withdrawn. 6.2 It is contended by the ld. Counsel that the Assessing Officer has disallowed the depreciation not only on the additions made during the year but also on opening WDV of the same on which the depreciation has been rightly allowed in the respective years. Accordingly, there is no justification to disallow th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the disallowance made by the Assessing Officer, he is directed to disallow the claim of depreciation in all other years since the entire claim of depreciation on non-existing assets is disallowable. For this purpose he may take necessary remedial measures under the relevant provision of the I.T.Act." 4. While issuing notice on 12.10.2009, it was stated as under:- "Whereas I have reasons to believe that your income chargeable to tax for the assessment year 2001-02 has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961. I, therefore propose to assess/re-assess the income/recomputed loss depreciation/allowance for the said assessment year and I hereby require you to deliver to me within 30 days from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0(2), the issue of notices u/s 148 of the AY 1996-97 and 1997-98 in instant case is within the restricted time limit provided u/s 150(2) of the IT Act." Section 150 of the Act reads as under: "150 - Provision for cases where assessment is in pursuance of an order on appeal, etc. (1) Notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision or by a Court in any proceeding under any other law. (2) The provisions of sub-section (1) shall no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese petitions may be allowed by quashing and setting aside the impugned notices. 7. On the other hand, counsel for the respondent Mr.Parikh has also taken us through the notice dated 19.7.2010, reply to the notice and decision of the authority rejecting the contention of the assessee. He submitted that while passing the order dated 15.9.2010, it is observed in para 4 as under:- "4. The submission of the assessee which runs in 6 pages is too broad and general in nature in the facts of the case. The submission of the assessee has been duly considered but the same is not tenable in law, and therefore, not acceptable. On the basis of discussion made herein above; it is concluded that the issue claim of depreciation on technical knowhow is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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