Profiteering in construction services for failure to pass input tax credit resulted in repayment exceeding the commensurate benefit and closure of pro...
Reassessment for disallowing higher depreciation on computer software was held time-barred because the original scrutiny assessment was based on a full and true disclosure, and the Revenue relied only on the same return, financials, and depreciation statement without any subsequent tangible material; hence the proviso to s.147 could not extend limitation and reopening amounted to impermissible review. Consequently, limitation was reckoned from the original assessment date, as the later s.143(3) r/w s.263 order dealt only with s.10A/10B computation and did not merge on the depreciation issue, rendering the reopening without jurisdiction. On merits, computer software was eligible for 60% depreciation under the then-existing "computers" entry, as no separate software entry existed pre-AY 2003-04, so the higher rate was allowable. - HC
Reassessment for disallowing higher depreciation on computer software was held time-barred because the original scrutiny assessment was based on a full and true disclosure, and the Revenue relied only on the same return, financials, and depreciation statement without any subsequent tangible material; hence the proviso to s.147 could not extend limitation and reopening amounted to impermissible review. Consequently, limitation was reckoned from the original assessment date, as the later s.143(3) r/w s.263 order dealt only with s.10A/10B computation and did not merge on the depreciation issue, rendering the reopening without jurisdiction. On merits, computer software was eligible for 60% depreciation under the then-existing "computers" entry, as no separate software entry existed pre-AY 2003-04, so the higher rate was allowable. - HC
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