The assessee engaged in developing, operating, and maintaining power projects, which had filed its income tax return for the assessment year 2014-2015, declaring significant losses under both normal provisions and under section 115JB.The case was selected for scrutiny, and during the assessment, the Assessing Officer disallowed an excess depreciation claim. On appeal, the Commissioner (Appeals) partly allowed the appeal.

Later, the AO issued a notice under section 148 to reopen the assessment for the same assessment year, citing reasons related to the depreciation claim, particularly concerning the foreign exchange fluctuation on imported machinery. On writ  the Court held that  there is no failure on part of the assessee to disclose fully and truly all material facts relevant for assessment in absence of any allegation or even remote reference to that effect made in the reasons recorded. On perusal of the assessment order under section 143(3), the Assessing Officer in the regular course of assessment has considered the issue of depreciation and has chosen to make addition only on the point of depreciation claimed on depreciation on the project development phase which clearly shows that the Assessing Officer after considering the claim of entire depreciation has made addition only on excess depreciation claimed by the assessee on the above issue. Accordingly the reassessment notice and order disposing the objection is quashed.   (AY. 2014-15)