The assessee claimed and was allowed depreciation at 60 per cent on computer software in the original assessment completed under Section 143(3). The assessee had disclosed the software as an ‘intangible asset’ in its audited financial statements filed with the return of income. After the expiry of four years, the Assessing Officer sought to reopen the assessment on the ground that being an intangible asset, the software was eligible for depreciation only at 25 per cent. The High Court quashed the reassessment notice. It was held that since all primary facts had been fully and truly disclosed by the assessee and the Assessing Officer had taken a view in the original assessment, the reopening was based on a mere change of opinion. The condition precedent for invoking the proviso to Section 147, being a failure on the part of the assessee to disclose material facts, was not satisfied.
(AY. 2012-13)