The Pr. Commissioner of Income-tax-4 v. Gillette Diversified Operations Pvt. Ltd
[Citation -2019-LL-0722-79]
| Citation | 2019-LL-0722-79 |
|---|---|
| Appellant Name | The Pr. Commissioner of Income-tax-4 |
| Respondent Name | Gillette Diversified Operations Pvt. Ltd. |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 22/07/2019 |
| Assessment Year | 2005-06 |
| Judgment | View Judgment |
| Keyword Tags | original assessment proceedings • substantial question of law • business of trading • escaped assessment • change of opinion • incorrect claim • material facts • rental income • reopening of assessment • depreciation allowance |
| Bot Summary: | The Revenue is in appeal against an order dated 28th February, 2018 passed by the Income Tax Appellate Tribunal in ITA No.907/Del/2015 for the Assessment Year 2005-2006. The issue sought to be urged by the Revenue concerns the alleged incorrect claim of depreciation made by the Assessee. According to the AO, the Assessee continued to claim depreciation on the full value of all the assets so leased without proportionately reducing the amount claimed as depreciation. On the basis that the above income had escaped assessment, a notice dated 20th March, 2012 under Section 147 read with 148 of the Act was issued by the AO to the Assessee. Thereafter, the assessment order was framed on 28th March, 2013 disallowing the above depreciation. The Assessee succeeded in its appeal before the Commissioner of Income Tax who by the order dated 14th November, 2014 held that the re- assessment was as a result of mere change of opinion and therefore bad in law. The ITAT noted that in the order re-opening the assessment, the AO referred to the documents already produced in the course of the original assessment proceedings and inferred that the proportionate amount of depreciation should have been disallowed because of de-leasing of certain assets and claim of depreciation on new assets that were used for less than 180 days. |