2016 (8) TMI 102

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.... The aggrieved revenue once again has come up in appeal. The following question of law was formulated on 15th March, 2010 when the appeal was admitted:- "Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was justified in coming to the conclusion that regular assessment require fresh investigation and finding although the fact remain that the purchase of plant and machinery was already established as bogus in the Block Assessment ?" We are surprised that Mr.Nizamuddin, learned advocate appearing for the appellant, was unable to show that the Income Tax Appellate Tribunal arrived at a "conclusion that regular assessment require fresh investigation". Such a conclusion was not shown to ....

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....dition on this account and no case could be made out on account of undisclosed income against the respondent-company. In view of various judicial pronouncements and when all the transactions are recorded in the books of account, no cognizance of the transactions could be taken in the block assessment for which reliance has been placed on the various decisions mentioned supra by the Ld.AR. With regard to the claim of depreciation allowed on the alleged bogus purchases worth Rs. 3,14,47,344/- for the year 2000-01, we hold that no addition could have been made in the block assessment as no incriminating documents were found in respect of such purchases. The survey proceedings were carried out at post-search and it was not related to t....

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....e is no finding that the purchase of assets worth Rs. 3,14,47,344/- was bogus. Moreover, the depreciation of Rs. 58,05,918/- claimed on the purchases of Rs. 3,14,47,344/- was not disallowed, meaning thereby in the regular assessment in the assessment year 2000-01 the Revenue accepted the genuineness of the assets purchased during the said year and also allowed depreciation thereon. In the assessment year under consideration, the A.O. has disallowed depreciation claimed on the WDV of such assets which were purchased during assessment year 2000-01. In the year under consideration also, the A.O. gave no reason for treating the said assets to be bogus, except the finding in the block assessment order. However, the C.I.T.(A) after considering th....