Case Law Details
Indo Colchem Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that reopening of assessment u/s. 147 of the Income Tax Act after four years without any tangible material amounts to change of opinion and according the same is invalid and liable to be quashed.
Facts- The assessee is a Private Limited Company engaged in manufacturing of Dyes and Dye intermediates. Regular assessment u/s. 143(3) was completed. Thereafter the case was reopened u/s. 148 on account of excess claim of additional depreciation for Fluidized Bed Furnace which was utilized to generate hot air by heat treatment and not for manufacture of article or things, thus not eligible for additional depreciation.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- The reasons recorded by the Assessing Officer does not show that any new tangible material available on record and there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for the purpose of assessment, when the same is reopened after four years period.
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