9911796707
TMI Blog2017 (1) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment for AY 200607. [2.0] That the assessee while filing the return of income for AY 200607 declared the total income of Rs. 5,39,660/. The assessee claimed depreciation on goodwill. The case was selected for scrutiny assessment and the notice under Section 143(2) of the IT Act was issued. Various details as per the questionnaires were issued including the claim of the assessee with respect to the depreciation or goodwill, which the assessee supplied / furnished. That thereafter the Assessing officer framed the scrutiny assessment under Section 143(3) of the IT Act determining the total income at Rs. 90,90,889/and granting the depreciation on the goodwill. That thereafter the Assessing Officer has issued the impugned notice under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t earlier while framing the scrutiny assessment the issue with respect to the depreciation on goodwill was gone into by the Assessing Officer and only thereafter the Assessing Officer granted / allowed the depreciation on goodwill as claimed by the assessee. It is submitted that therefore the assumption of jurisdiction to reopen the assessment is bad in law. [3.2] It is further submitted by Shri Shah, learned advocate appearing on behalf of the petitioner that even otherwise the assessee was claiming such depreciation since the year 1999 onwards and at no point of time there was any dispute raised by the Assessing Officer and the depreciation on goodwill was allowed. [3.3] It is further submitted by Shri Shah, learned advocate appearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation of goodwill was debatable. It is submitted that therefore it cannot be said that any error was committed by the Assessing Officer in assuming the jurisdiction to issue the impugned notice. Making above submissions it is requested to dismiss the present petition. [5.0] Heard learned advocates appearing for respective parties at length. At the outset it is required to be noted that the Assessing Officer has sought to reopen the assessment for AY 200607 under Section 147 of the IT Act on the ground that though the assessee was not entitled to depreciation on goodwill, the Assessing Officer granted / allowed the same. However, from the material on record it appears that the issue with respect to depreciation on goodwill was gone into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to depreciation of goodwill is now not res integra in view of the decision of the Hon'ble Supreme Court in the case of Smifs Securities Ltd. (Supra) and the decision of the Division Bench of this Court in case of Swastik Industries (Supra). Under the circumstances also, it cannot be said that any income chargeable to tax has escaped the assessment. Under the circumstances also, the impugned notice under Section 148 of the IT Act and the reassessment proceedings deserve to be quashed and set aside.
[6.0] In view of the above, present Special Civil Application succeeds. Impugned notices issued under Section 148 of the IT Act and the reassessment proceedings are hereby quashed and set aside. Rule is made absolute accordingly. No costs. X X X X Extracts X X X X X X X X Extracts X X X X
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