2018 (11) TMI 1984 - HC - Income Tax

Notice beyond four-year period in reassessment under section 32(1)(iia) made returnable January 7, 2019; final orders barred without prior permission.

HC directed that a notice issued beyond the four-year period in a reassessment concerning alleged excess depreciation under section 32(1)(iia) be made ... Reopening of assessment - assessee has claimed excess depreciation u/s 32 (1) (iia) - Notice issued beyond a period of four years - HELD THAT:- Having regard to the submissions advanced by the learned advocate for the petitioner, issue NOTICE returnable on 7.1.2019. By way of ad-interim relief, the respondent may proceed further pursuant to the impugned notice; he, however, shall not pass the final order without permission of this Court. Direct service is permitted today. Assessing officer issued reopening notice under section 147 of the Income Tax Act, 1961 for AY 2011-12, alleging excess depreciation claimed under section 32(1)(iia). During original assessment under section 143(3), the petitioner had been specifically asked and had furnished detailed reply and statement justifying the claim under section 32(1)(iia); the assessing officer nonetheless recorded reasons to reopen. Petitioner contends the reopening is based on a 'change of opinion' and that the impugned notice dated 19.2.2018 was issued beyond four years from the end of the relevant assessment year, 'without there being any failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment.' Court issued notice returnable on 7.1.2019 and granted ad-interim relief restraining the respondent from passing any final order pursuant to the impugned notice; respondent may proceed further but not finalize without court's permission.