9911796707
TMI Blog1978 (11) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... g jurisdiction over the petitioner. Prior to 1956, the petitioner had installed certain machinery and plant and in respect thereof had claimed normal depreciation as well as initial depreciation as provided by the I.T. Act, which was then in force. The ITO was allowing depreciation, both initial and ordinary, as per his own calculations from year to year. It has been provided in the I.T. Act that the initial depreciation granted would not reduce the written down value of the assets on which it is granted. The ITO in connection with the assessment for the assessment year 1962-63 granted depreciation in his original order for the said year which, taking into account the aggregate depreciation allowance granted in the preceding years and the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat application by its order October 15, 1975, but ultimately it appears that in pursuance of an order passed under s. 256(2) on the application of the revenue, the matter has been referred and that reference is Income-tax Reference No. 222 of 1976 pending in this High Court. While the reassessment order in connection with the assessment year 1962-63, was being challenged by the petitioner before the AAC and the Income-tax Appellate Tribunal as stated earlier, the ITO also reopened the assessments by notices under s. 147(a) read with s. 148 of the I.T. Act, so far as assessment years 1963-64, 1964-65, 1965-66 and 1967-68 were concerned. The ground for reopening of the said assessments was identical in the case of each year, namely, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, in respect of the humidification plant, the AAC followed the decision of this High Court in Industrial Machinery Manufacturers Pvt. Ltd. v. State of Gujarat [1965] 16 STC 380, where it was held that humidifiers were textile machinery and the AAC accordingly held that the depreciation originally granted in respect of humidifiers was correct and that the different view taken by the ITO in the reassessment proceedings was not justified on merits. The petitioner filed revision applications before the Commissioner of Income-tax, the respondent herein, on March 1, 1975, in respect of the four years 1963-64 to 1965-66 and 1967-68. Before the respondent gave his decision on the revision applications, the Tribunal decided the appeal of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the part of the petitioner-company to disclose these material facts to the Income-tax Officer and dereliction of duty on the part of the Income-tax Officer in failing to see whether the aggregate of all allowances in respect of depreciation under section 10(2)(vi) had exceeded the original cost to the petitioner-company that the situation came about under which the petitioner was in fact allowed excess depreciation in the assessment years under consideration. It was, therefore, not possible to say that it was by reason of the omission or failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the relevant years that the income chargeable to tax escaped assessment for those y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment because of the assessee's omission or failure to disclose fully and truly all material facts and no action can be taken for reopening the assessment under section 147(a) of the Income-tax Act, 1961, on the basis of detection of that mistake alone after the expiry of four years from the end of the assessment year. " In view of this decision of the Supreme Court it is clear that the view taken by the Division Bench of this High Court in Ahmedabad Cotton Mfg. Co. Ltd. [1974] 95 ITR 639 has now received the imprimatur of the Supreme Court and thus in view of these two decisions the order of the respondent dismissing the revision petitions filed by the petitioner herein for the assessment years 1963-64 to 1965-66 and for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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