TaxTMI 
TaxTMI 
2006 (2) TMI 582
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....12,70,080. The return was duly accompanied by the copies of trading accounts, balance sheet, etc., which was processed under section 143(1)(a) vide intimation dated 27-3-1991. At the (time) of processing, prima facie adjustment tot he tune of Rs. 6,791 on account of donation and claim of depreciation on land and land development was made. Thereafter, a notice under section 148 was issued after recording the reasons for reopening of the case and the said notice on 8-4-1992. In response to this notice, the assessee filed return of income. These loss was duly processed at Rs. 12,63,290 and the prima facie adjustments made at the time of original processing were again made and the loss was recomputed at Rs. 12,63,290. Thereafter, the case was s....
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....reasons to believe that income chargeable to tax has escaped assessment. Proceedings under section 147 are, therefore, initiated. Issue notice under section 148 for the assessment year 1990-91." 4. The assessee challenged the initiation of the proceedings under section 148 of the Income-tax Act and submitted that the reasons are not valid because there was conflict of judicial opinion on the subject of claim of depreciation on Central investment subsidy. The CIT(A), however, was of the view that the case laws referred to by the counsel of the assessee pertain to the period prior to the amendment in 1989 and there is a difference in language of section 147. Therefore, the case laws are not applicable. The CIT(A) was also of the view that th....
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....pening of the assessment is bad in law and the Assessing Officer has not assumed the jurisdiction properly in the matter. The learned counsel for the assessee relied upon the decisions of the Hon'ble Punjab & Haryana High Court in the case of CIT v. Atlas Cycle Industries [1989] 180 ITR 319, in the case of Vipan Khana v. CIT [2002] 255 ITR 220 (Punj. & Har.) in the case of CIT v. M.P. Iron Traders [2004] 136 Taxman 520 (Punj. & Har.) and CIT v. Smt. Binda Devi [2006] 150 Taxman 95 (Punj. & Har.). The learned counsel for the assessee further submitted that the Assessing Officer cannot make further enquiry into the matter and as such assume jurisdiction. The learned counsel for the assessee submitted that since the reasons (for) reopening the....
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....fficer not to reduce the Central subsidy from the WDV of the building and plant and machinery for the purpose of depreciation. Therefore, it stands that the decision of the Hon'ble Punjab & Haryana High Court in the case of Jindal Bros. Rice Mills (supra) was no longer a good law because of the decision pronounced by the Hon'ble Supreme Court in the case of P.J. Chemicals (supra) in which it was held that the amount of subsidy is not to be deducted from the actual cost under section 43(1) for the purpose of calculation of the depreciation. The CIT(A), therefore, should have considered this decision while deciding the issue of reopening of the assessment. On the face of it and considering the decision of the Hon'ble Supreme Court in the case....
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....eedings under section 147, the Assessing Officer cannot be allowed to make fishing enquiries to probe if any other income had escaped assessment or not. Such enquiries can only be permitted if at the first instance some material comes to his notice to suggest that some other item of income may have escaped assessment or had been under assessed. 12. Same view is taken by the Hon'ble Punjab & Haryana High Court in the cases of M.P. Iron Traders ( supra) and Smt. Binda Devi (supra). We may also mention here that while filing the return of income there is no requirement under the law to file evidence regarding purchase of fixed assets, etc. for claiming depreciation. Section 143(2) gives powers to the Assessing Officer to direct the assessee t....