Ashok Leyland Ltd Vs DCIT (ITAT Chennai)
No Second Chance After 4 Years – Reassessment Without Assessee’s Failure to Disclose- Ab Initio Void- ITAT Quashes Reopening
Chennai ITAT allowed the Assessee’s appeal & quashed reassessment proceedings initiated u/s 147/148 after 4 years, holding that AO failed to establish any failure on Assessee’s part to fully & truly disclose material facts.
Assessee had filed its return for AY 2010-11, later revised declaring nil income. Original assessment u/s 143(3) dated 21.05.2014 determined income at ₹328.87 crore after disallowing part of additional depreciation claimed u/s 32(1)(iia). On 31.03.2017 (after 4 years), AO issued notice u/s 148 alleging excess claim of additional depreciation of ₹3.41 crore on electrical installations, data processing equipment & exchange fluctuation capitalization. Reassessment was completed making disallowance of ₹8.64 crore.
Before ITAT, Assessee argued that all primary facts – details of fixed assets, depreciation, exchange loss capitalization, audit report & reconciliations- were fully disclosed during original scrutiny. AO had raised specific queries u/s 142(1), examined details, & already disallowed ₹9.53 crore on additional depreciation. Thus, reopening was merely a change of opinion, impermissible beyond 4 years in absence of failure to disclose. Reliance was placed on Kelvinator of India Ltd 320 ITR 561 (SC), NDTV Ltd 424 ITR 607 (SC), Foramer France 264 ITR 566 (SC), and Fenner (India) Ltd 241 ITR 672 (Mad).
