Case Law Details
Brief of the Case
High court held In the case of The CIT vs. M/s Kerala Kaumudi (P) Ltd that the fundamental basis on which the assessment was re-opened itself is untenable. We are fully agree with the contention of the Tribunal that in the absence of any justifiable vitiating circumstances, the AO cannot decline to accept the bill produced by Assessee and accordingly cannot deny the investment allowance and depreciation allowed in the last assessment year by re-opening of assessment.
Facts of the Case
The assessee company was engaged in printing and publishing of a newspaper by name ‘Kerala Kaumudi’. The assessee imported a Rotary Printing Press from Germany. The machine needs to be installed by local labour. On this basis, the assessee claimed investment allowance and depreciation which was allowed by the Assessing Officer. In the subsequent year, assessee claims expenditure towards installation of machinery which was denied on the ground that installation of machinery was not completed in the previous assessment year. Consequently AO re-opened the previous assessment year case and withdrew the exemption of Investment allowance and depreciation.
Contention of the Assessee
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