C.DORAIRAJ,COIMBATORE vs. ACIT NON-CORPORATE CIRCLE-1, COIMBATORE

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ITA 2374/CHNY/2017Status: DisposedITAT Chennai19 November 2018AY 2011-123 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the re-opening of assessment was permissible under Explanation-2(c)(iv) of Section 147 of the Income Tax Act, as excessive depreciation had been computed.

What were the facts?

The assessee appealed against the CIT(A)'s order confirming the re-opening of assessment. The re-opening was to deny a higher depreciation rate on delivery vans.

What were the issues?

Whether the re-opening of assessment was valid for denying higher depreciation on delivery vans, considering the provisions of Section 147.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘ B’ SMC BENCH : CHENNAI

Before: SHRI GEORGE MATHAN

आदेश / O R D E R This is an appeal filed by the assessee/Revenue against the order of the Commissioner of Income-tax (Appeals)-2, Coimbatore in dated 28.06.2017 for the assessment year 2011-12.

2.

Mr.K.Raghu represented on behalf of the Assessee and Mr.B.Sagadevan represented on behalf of the Revenue.

3.

It was submitted by the ld.A.R that the only issue in this appeal was against the action of Ld.CIT(A) confirming re-opening of assessment for the purpose of denying the assessee higher rate of depreciation of 30% on opening WDV as against 15% in respect of delivery vans. It was a submission that it is highly debatable issue and reopening was not permissible.

4.

In reply, the ld.D.R vehemently opposed the submission of the ld.A.R. It was a submission that Explanation-2 to Section 147 of the Act covers this issue as the re-opening has been done within four years. It was a submission that the assessment year is 2011-12 and the original assessment order passed u/s.143(3) of the Act was completed on 11.03.2014 and notice u/s.148 was issued on 28.03.2016.

5.

I have considered the rival submissions. A perusal of the provisions of Explanation-2(c)(iv) of Section 147 of the Act provides for re-opening where an assessment has been made, but excessive of depreciation allowance has been computed. As the re-opening is squarely protected by the Explanation-2(c)(iv) of Section 147 of the Act, the re-opening of assessment stands upheld.

6.

In the result, the appeal of the assessee is dismissed.

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