Brief : In the light of the above decisions, it can now be concluded that orders of CIT which set aside assessment orders on the ground that they are erroneous (due to non application of mind, etc) without recording any finding to show as to how the said assessment order is erroneous or prejudicial to the interest of revenue (without rejecting the claim of the taxpayer) are bad in law and liable to be quashed.
Citation : PIEM Hotels Ltd Vs. DCIT (ITA No. 523/Mum/2009) (Mum)
Court : ITAT Mumbai
Recently, in the case of PIEM Hotels Ltd Vs. DCIT (ITA No. 523/Mum/2009) (Mum) Mumbai bench of the Income-tax Appellate Tribunal (the tribunal) held that licenses, approvals, registrations, etc. qualify as intangible assets even though they are recorded as “goodwill” in books of accounts and therefore, entitled to depreciation under Section 32(1)(ii) of the Income-tax Act, 1961 (the Act).
Merely because the AO has not examined license, approvals, registrations, etc and had not applied his mind regarding allow ability of depreciation of asset claimed as intangible asset does not mean that the order passed by AO is erroneous and prejudicial to the interest of revenue.
Also, an authority exercising revisional power cannot direct the lower authority to complete the assessment in particular manner.
Facts of the case
