TaxTMI 
TaxTMI 
2001 (3) TMI 44
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.... machines in question, a claim of the assessee for depreciation at 30 per cent on the old machinery and his claim to investment allowance under s. 32A in respect of new machinery, namely, rig machines, was allowed. On 15th March, 1989, the first reassessment proceedings were initiated in respect of the asst. yr. 1986-87 and the assessment was completed on 31st March, 1989. The claim to investment allowance was disallowed and the rate of depreciation on the machines in question was reduced to 15 per cent from 30 per cent. On appeal the assessee was successful. The first appellate authority vide its order dt, 29th Jan., 1990, held that since there was no failure on the part of the assessee to disclose fully and truly all material facts ne....
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.... by the authorised representative of the assessee while inspecting the record of the case after notice was served on the assessee. The reasons recorded on 27th Jan., 1997, which are in consonance with the plea taken by learned counsel for the respondents, read as under "Reason recorded: In this case investment allowance to the tune of Rs.2,33,485 was granted while completing the assessment originally on 27th March, 1987, under s. 143(3) thereafter on 31st March, 1989, the same was withdrawn. However, the assessee went in an appeal before the CIT(A) who in turn allowed this allowance as aforesaid. The Tribunal vide their order ITA Nos. 346 and 347/Jp of 1990, dt. 27th June, 1994, has rejected this appeal filed by the Department. Now the ....
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.... in earlier proceedings in favour of the assessee that there has been no failure on the part of the assessee to disclose fully and truly all material facts for the assessment year in question. With these undisputed background it is apparent that recourse to proceedings under s. 147 on 17th Feb., 1997, in respect of the asst. yr. 1986-87 was clearly beyond time within which the AO could exercise his jurisdiction to initiate proceedings under s. 147. 7. A proviso to s. 147, which empowers the AO to initiate the proceedings to assess or reassess such income in respect of which he has reason to believe that any income chargeable to tax has escaped assessment for any assessment year requires: "Provided that where an assessment under sub-S. (3....