Pr. Commissioner of Income-tax-4, Ahmedabad v. West Inn Ltd
[Citation -2017-LL-0619-6]
| Citation | 2017-LL-0619-6 |
|---|---|
| Appellant Name | Pr. Commissioner of Income-tax-4, Ahmedabad |
| Respondent Name | West Inn Ltd. |
| Court | HIGH COURT OF GUJARAT AT AHMEDABAD |
| Relevant Act | Income-tax |
| Date of Order | 19/06/2017 |
| Judgment | View Judgment |
| Keyword Tags | income chargeable to tax • excess depreciation • regular assessment • assessable income • question of law • oral order • reopening of assessment • adjusted book profit • income escaping assessment • full and true disclosure • change in method of depreciation |
| Bot Summary: | Following questions have been presented for our consideration: A whether the Tribunal is right in law and on facts in quashing the reopening proceedings u/s 147 of the Act B Whether the Tribunal is right in law and on facts in not confirming the adjustment of Rs.4,20,00,063/ made in the book profit u/s 115JB of the Act being the surplus arise due to change in method of calculating depreciation from WDV to SLM method 2 As can be seen, the dispute between the Revenue Page 1 of 4 HC-NIC Page 1 of 4 Created On Wed Jun 28 10:05:20 IST 2017 O/TAXAP/395/2017 ORDER and the asseessee falls in two parts. First part is with respect to the action of the Assessing Officer in reopening the assessment and the second pertains to the adjustment of Rs.4.20 crores made by the Assessing Officer in the book profit under Section 115JB of the Income Tax Act, 1961 during the reassessment. The Tribunal struck down the reopening of the assessment itself. Learned counsel representing assessee submits that the Assessing Officer has reopened a regular assessment framed in his case beyond four years from the end of the impugned assessment year. Its only case is that the Assessing Officer has rightly resorted to the impugned reopening as per the reasons extracted in preceding paragraph. Hon ble jurisdictional high Court in its recent decisions 359 ITR 447 Kanak Fabrics vs. ITO and 360 ITR 496 Gujarat lease Financing Ltd. vs. DCIT quashes identical reopening beyond four years from the end of the relevant assessment year for the reason that the assessing authorities had not uttered a single word attributing assessee s failure in disclosing fully and truly all facts. We accept assessee s legal ground challenging validity of the impugned reopening in these facts and law. |