INCOME TAX ACT, 1961

Section 148

Reassessment - Validity - Disallowance of depreciation and other expenses in respect of running of a boiler and turbine -

AO issued notice under section 148 for re-opening of assessment and during course of re- assessment proceedings, AO disallowed the depreciation and other expenses in respect of running of a boiler and turbine while computing the income under the head 'other sources' on the ground that there were strong indication that neither boiler nor turbine were ready for the use up to 31-3-1992. Held: Proviso declares that where original assessment was made under section 143(3), after scrutiny of records, no action should be taken after expiry of 4 years from the end of relevant assessment year, unless the case attracts exceptions provided by proviso to section 147. Assessee had disclosed fully and truly all material facts necessary for assessment by way of disclosing the hire income for boiler and turbine and interest cum income on deposits on share application money as well as claiming depreciation in respect of hired out boiler and turbine and by way of furnishing necessary documents before AO. Thus, notice under section 148 was bad in law.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT