2020 (9) TMI 335

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2017 in I.T.A.Nos.1719/Mds/2016 and I.T.A.Nos.2038/Mds/2016 for the assessment year 2009-2010. 2. These appeals were admitted on 10.07.2018 to consider the following substantial question of law. :- "Whether the actual purchase price of a second-hand asset can be ignored by purported recourse to Explanation 3 to Section 43(1) of the Income Tax Act, 1961 ?" 3. The assessee, an individual filed for return of income for the assessment year under consideration, AY-2009-2010 admitting the total income of Rs. 12,92,820/-. The assessment was selected for scrutiny and notice under Section 143(2) of the Act was issued, after which, the assessment was completed by an order dated 09.11.2011. The assessment was reopened under Section 147 of the Act ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the assessee as well as the Revenue filed appeals before the Tribunal. By the impugned order, the appeal filed by the Assessee has been dismissed and the appeal filed by the Revenue has been allowed. This is how the assessee is before us by way of these two Tax Case Appeals challenging the common order passed by the Tribunal dated 03.02.2017. 6. We have elaborately heard Mr.J.Balachandar, learned counsel for the appellant / assessee and Mr.T.R.Senthilkumar, Senior Standing Counsel and Mrs.K.G.Usharani, Junior Standing Counsel for the respondent / revenue. We have narrated the factual background, those facts, which are relevant for the purpose of deciding these appeals. 7. The sheet anchor of the submissions of the learned counsel for the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee's tax liability and the assessee has not made any ground to interfere with the order passed by the Tribunal. 11. When the assessment was re-opened under Section 147 of the Act, the assessee was given a questionnaire calling for details with regard to the claim for depreciation on the acquisition of the secondhand windmill on 29.03.2017.   12. After considering the submissions made by the assessee, which were identical to that of the arguments advanced before us, which were recorded above, the assessing officer discussed the aspect as to how the real worth of the asset has to be computed and in doing so, how the diminution of the economic value of the asset over its period of views has to be determined and applied. 13. ....