TaxTMI 
TaxTMI 
2014 (11) TMI 184
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....ed 20 November 2013 seek to reopen the assessment for Assessment Year 2009-10 and 2010-11 respectively. Both the impugned notices have been issued within a period of less than 4 years from the end of the assessment year. 2) Both the petitions raise identical issues save and except change in the quantum of figures and that for Assessment Year 201011 the petitioner has claimed depreciation Goodwill which is not claimed in Assessment year 2009-10. For the sake of convenience we shall refer to the facts set out in W.P. No.4650/2014 dealing with Assessment Year 2009-10 for the purpose of this order. 3) On 21 April 2010 the petitioner filed its return of income for AY 2009-10 inter alia valuing intangible assets as under: (i) Goodwill at....
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....of the valuation certificates issued by you to M/s. Perfect Auto Industries? "Ans. I have issued these certificates only on business projections and not on the basis of any valuation of tangible and intangible assets. I have to also state that I have not issued this certificate fort any drawings, designs and research development. Q.10. I am showing you the Audit Report of Powerdeal Energy System (I) Pvt. Ltd. for F.Y. 2008-09 relevant to AY 2009-10. Please go through the depreciation chart (Annexure 3 of Form 3 CD) and and explain the applicability of your certificate with respect to claim of the assessee regarding depreciation. Also, please explain the basis and utility of the Certificates issued by you to M/s. Perfect Auto Industrie....
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....s made from steel etc. The assessee filed its return of income for the A. Y. 2009-10 on 21.04.2010. As per the balance sheet, the valuation of some specific intangible assets of the assesssee are as under:- Asset Valuation in (Rs.) Goodwill 24,37,27,771/- Product Research & Development 22,73,00,000/- Product Design & Drawing 7,27,00,000/- Total 54,37,27,771/- The assessee company has claimed total depreciation of Rs. 9,49,14,770/in its return of income for the A. Y. 200-10, out of which the depreciation on the above mentioned assets is as under:- Asset Rate of depreciation Depreciation (in Rs.) Goodwill 0.00% Nil Product Research & Development 25.00% 5,68,25,000/- Prod....
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....Khairnar, following facts are emerged: Goodwill: There is no basis for valuation. No authentic valuation has been made by any competent authority. Product R & D, Product Design & Drawing: The assessee could not establish the existence of intangible assets. There is no evidence of creation of any intangible assets and expenditure incurred for creation of any asset. The assessee has not established that any expenditure is incurred for Research & Development and for creation of assets. Subsequently, the valuation of intangible assets have been done by two Govt. approved valuers. These valuers have categorically stated that the assessee has not created any intangible assets. Thus, there is no existence of intangible assets like Product....
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....urvey proceedings under Section 133A of the Act certain facts emerged which give reason to believe that the petitioner claim for depreciation on intangible assets was based on incorrect valuation. This resulted in excess depreciation being allowed. Thus, it was held that the impugned notices were not issued on the basis of change of opinion. 9) The grievance of the petitioner is that the impugned notice for the Assessment Years 200910 and 2010-11 are without jurisdiction in inasmuch as the same arises only on account of change of opinion. The Assessment order under Section 143(3) of the Act for A.Y. 2009-10 was passed on 26 December 2012 while Assessment Order under Section 143(3) of the Act for A.Y. 2010-11 was passed on 12 December 201....