That the original assessment was completed under S. 143(3) of the Act. In the course of re-assessment proceedings, the AO disallowed the depreciation and other expenses in respect of running of a boiler and turbine while computing the income under the head ‘other sources’ on the ground that there were strong indication that neither the boiler nor the turbine were ready for the use up to 31.03.1992. He also held that agreements entered into between the respondent-company and M/s. Mysore Petrochemicals for hiring out the boiler and turbine and the evidence produced in support of the same, were generated with the sole purpose to prove that boiler and turbine have been hired out. Accordingly, AO determined the total income of the assessee at Rs.1,42,36,688/-under the head ‘income from other sources. CIT (A) held that the re-assessment done by the AO is liable to be annulled. Tribunal affirmed the order of CIT (A). On appeal the High Court affirmed the order of Tribunal. (AY. 1992-93)
CIT v. I.G. Petrochemicals Ltd. (2020) 185 DTR 225 / 314 CTR 857(Karn.)(HC)
S. 147 : Reassessment-After the expiry of four years-Unabsorbed depreciation–No failure to disclose material facts–Reassessment is held to be bad in law. [S. 32, 148, 149]