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TMI Blog2021 (3) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... 263 of the Act the assessing officer, after verifying the details, has recorded a categorical finding that the expenditures claimed by the assessee on the BOT project are genuine. AO has also given effect to the directions of learned Commissioner (Appeals) by allowing depreciation on the BOT project. AO has carried out the directions of, both, PCIT and learned Commissioner (Appeals) in letter and spirit. Validity of assumption of jurisdiction u/s 263 - In principle, we agree with the learned Counsel for the assessee that the reassessment order cannot be held as either erroneous or prejudicial to the interest of revenue, as, the assessment was reopened only for the purpose of disallowing assessee's claim of depreciation. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge over river Kosi in the state of Bihar on build, operate and transfer (BOT) basis under the Annuity Scheme. For the assessment year 2012-13, the assessee filed its return of income, originally on 26-09-2012 declaring loss of ₹ 61,99,84,578/-. Subsequently, assessee filed a revised return on 29-03-2014 revising loss to ₹ 62,53,59,860/- after claiming depreciation on the BOT project constructed by it. Originally, assessment was completed under section 143(3) of the Act vide order dated 11-03-2016 accepting the income/loss returned by the assessee, after allowing the claim of depreciation. Subsequently, the assessment was reopened under section 147 of the Act on the reasoning that the assessee not being the owner of the bridge co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on; however, the revisional authority was not convinced. Learned PCIT, ultimately, passed the impugned order setting aside the order passed under section 143(3) r.w.s. 147 of the Act as well as the rectification order passed under section 154 of the Act while directing the assessing officer to verify the veracity and genuineness of assessee's claim of capitalized expenditure and thereafter allow the amortization benefit. After passing of the order under section 263 of the Act, learned Commissioner (Appeals), while deciding assessee's appeal filed against the assessment order passed under section 143(3) r.w.s. 147 of the Act, passed an order on 22-10-2019 directing the assessing officer to allow assessee's claim of depreciation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143(3) r.w.s. 263 of the Act the assessing officer, after verifying the details, has recorded a categorical finding that the expenditures claimed by the assessee on the BOT project are genuine. Further, the assessing officer has also given effect to the directions of learned Commissioner (Appeals) by allowing depreciation on the BOT project. Thus, it is apparent, the assessing officer has carried out the directions of, both, learned PCIT and learned Commissioner (Appeals) in letter and spirit. As far as validity of assumption of jurisdiction under section 263 of the Act is concerned, in principle, we agree with the learned Counsel for the assessee that the reassessment order cannot be held as either erroneous or prejudicial to the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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