The Assessing Officer sought to reopen the assessment on three grounds: (i) that the lease rent paid on equipment included a principal component which was unallowable; (ii) that there was a likelihood of gain on foreign currency hedging expenses; and (iii) that depreciation on goodwill was not allowable. The High Court quashed the reopening notice, observing that: (a) the lease rent transactions with CISCO were repetitive, regular, and consistently accepted by the Revenue in scrutiny assessments from AY 2012-13 onwards; (b) the foreign exchange gains\/losses were unrealized and correctly reflected, with only standard bank charges claimed; and (c) the statutory amendment denying depreciation on goodwill came into effect only from 1-4-2021 and could not be used as a basis to allege income escapement for AY 2017-18. Finding no fresh tangible material to assume jurisdiction, the reopening was held invalid. The Hon\u2019ble Supreme Court agreed with the High Court and dismissed the Revenue’s Special Leave Petition. (AY. 2012-13, 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147: Reassessment-Lease rent-Unrealised gain-Depreciation-Absence of fresh tangible material-Reopening cannot be initiated on repetitive lease rent transactions accepted in past scrutiny assessments, unearned\/unrealized foreign exchange hedging variations, or by applying prospective amendments on goodwill depreciation retroactively-SLP of revenue dismissed. [S. 32(1), 37(1),43(6) (c), 148, Art. 136]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64392","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gKA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64392"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64392\/revisions"}],"predecessor-version":[{"id":64393,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64392\/revisions\/64393"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}