2017 (4) TMI 1015

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....ich the Assessing Officer has sought to reopen the assessment for Assessment Year 2010-2011 alleging inter alia that the income chargeable to tax has escaped assessment within the meaning of Section 147 of the Act. The petitioner has also challenged the reopening of the assessment for A.Y 2010-2011. 2. The facts leading to the present Special Civil Application in nutshell are as under :- 2.1 That the petitioner filed return of income for Assessment Year 2010-2011 declaring total income of Rs. 1,06,85,470/=. That, alongwith the return, the assessee submitted tax audit report and the audited annual accounts also. That, the assessee claimed depreciation on certain equipments at the rate of 30% as against the regular/normal depreciation. The ....

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....f transportation of goods on hire but not to its user in some other non-hiring business of the assessee. The assessee company engaged in the business of Oil Field Services/Rig Shifting Services, filed return of income for A.Y. 2010-11 on 25.09.2010 declaring income of Rs. 1,06,85,470/-. The same was assessed u/s 143(3) and income was assessed at Rs. 1,08,22,910/- vide order dated 18.01.2013. The assessee had claimed depreciation on Truck, Tanker, Trailor, Air Compressor, Cranses, Bolero etc. at the rate of 30% as per the following details. Asset@ 30% W.D.V. Addition upto 9/2009 Addition after 9/2010 Total Depreci ation at 30% Depreci ation allowab le @ 15% Excess Deprecia tion allowed TATA- 407 5151     5151 1545 7....

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.... as per the P&L Account, no 'hire income' has been shown. Even in case, they were used not solely for their own business, just by giving them on hire occasionally, the assessee does not become eligible for higher depreciation of 30 percent; the assessee was eligible for depreciation at normal rate of 15 percent only. In view of the above facts, I have reasons to believe that the income of Rs. 58,99,546/- has escaped the assessment within the meaning of provisions of section 147 of the I.T. Act and hence notice u/s. 148 of Income Tax Act is issued" If you have any objection against the re- assessment proceedings, then file the same immediately. 2.4 On receipt of the reasons recorded to reopen the assessment for A.Y 2010-2011, the assessee....

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....ed to the same and only thereafter, the Assessing Officer accepted the claim of the petitioner for depreciation at the rate of 30% against the regular depreciation, and therefore, it is the case on behalf of the petitioner that the impugned reopening is nothing but a change of opinion by the subsequent Officer, and therefore, the reopening of assessment is not permissible. 4. Shri Manish R. Bhatt, learned Senior Advocate appearing on behalf of the Revenue has tried to support the impugned notice by submitting that as the Assessing Officer has formed an opinion that on the particular items/equipments, the assessee was not entitled to claim 30% depreciation against the regular depreciation, and therefore, the income chargeable to tax has esc....