TaxTMI 
TaxTMI 
2021 (7) TMI 66
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....ourt on the following substantial questions of law: "(i) the Tribunal was correct in upholding the validity of the re-assessment proceedings concluded under Section 17 of the Act although the necessary requirements under the said provision were not satisfied? (ii) The tribunal was correct in holding that an ATM which performs the functions of a computer such as input, process and output, could not be considered as a 'Computer' or 'Computer System' or Computer Terminal' or 'Computer Peripheral Device' for the purpose of claiming depreciation under the Act at 60%? (iii) The Tribunal was justified in placing reliance on the decision rendered in the context of ATM under the Karnataka Sales Tax Act, 1952 ("KST....
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..... The Joint Commissioner of Income Tax re-opened the assessment for the assessment in question under Section 147 of the Act and passed an order dated 17.02.2014 making additions on account of disallowance of depreciation at the higher rate of 25% on ATMs, UPSs, Printers, Scanners and other electrical devices to the extent of non furnishing of the evidence. 3. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) who by an order dated 14.07.2014 upheld the action of the Assessing Officer in re-opening of assessment under Section 147 of the Act as well as on the issue of depreciation. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the tribunal' for s....
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....r of Income Tax (Appeals) and the Assessing Officer erred in not allowing depreciation as claimed under the block 'Computers including Computer Software' despite the fact that the assessee had submitted invoices evidencing acquisition to the extent of 66% of the assets acquired during the year. It is also urged that books of accounts of the assessee are awaited by external auditors and the same are subject to tax audit under Section 44AB of the Act and insistence of the authority for production of 100% invoices negates the very purpose of tax audit and it is rendered as futile exercise. It is also argued that assessee has 900 branches all over India and it is not practically possible to produce 100% invoices in support of additions ....
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....the same. It is also urged that the finding in this regard is in conformity with Section 37 of the Act. 6. We have considered the submissions made by learned counsel for the parties and have perused the record. The assessee filed the return for the Assessment Year 2008-09 on 28.09.2008 and the assessment was completed on 07.12.2010. A notice was issued to the assessee on 21.03.2013 under Section 148 of the Act and thereafter, reasons for re-opening the assessment were supplied to the assessee on 07.05.2013. Therefore, the re-opening of assessment is in accordance with law and the same has been rightly held to be so by the Assessing Officer, Commissioner of Income Tax (Appeals) and the tribunal. Therefore, substantial question of law No.1 i....