ACIT Vs Unique Tags Private Ltd. (Supreme Court of India)
The case involves a Special Leave Petition (SLP) filed by the Revenue before the Supreme Court against the Gujarat High Court’s order in Unique Tags Pvt. Ltd. vs ACIT, concerning the reopening of assessment for Assessment Year (AY) 2011-12 under sections 147, 148, and 144 of the Income Tax Act, 1961. The Supreme Court dismissed the SLP on the ground of a gross delay of 1,040 days in filing, without examining the merits of the case.
Read High Court Judgment: Unique Tags Private Ltd Vs ACIT (Gujarat High Court)
The petitioner, Unique Tags Pvt. Ltd., is a company engaged in the manufacture of woven labels and power generation. For AY 2011-12, the company filed its original return of income on 24.09.2011 declaring Rs. 85,99,759, and a revised return on 26.09.2011 with the same income after claiming depreciation of Rs. 3,69,42,979. This included additional depreciation of Rs. 41,00,144 on certain plant and machinery additions, including Rs. 12,88,353 added on 08.09.2010 and Rs. 15,48,061 added on 08.01.2011. Additional depreciation of Rs. 33,41,886 was claimed on a windmill project added on 31.01.2011.
The case was selected for scrutiny, and the Assessing Officer (AO) issued notices under section 142(1) calling for details of additions to fixed assets exceeding Rs. 10 lakhs and justification for additional depreciation under section 32(1)(iia). The petitioner submitted all requested information, including a Tax Audit Report, statements of asset additions, bills, and charts explaining compliance with section 32(1)(iia). The AO, after examining these details, did not make any addition regarding the additional depreciation while completing the assessment under section 143(3) on 11.10.2013.
