Apcotex Industries Limited Vs. ITO Circle-15(1)(1)

Parties Involved

Facts Summary

The assessee, Apcotex Industries Limited, filed its original return of income for A.Y. 2013–14 declaring a total income of Rs. 11,35,45,570/-. The assessment was completed under section 143(3) determining total income of Rs. 13,40,45,570/-. Subsequently, a reassessment under section 143(3) read with section 147 was completed on 29.12.2017 determining total income of Rs. 14,03,67,404/-. Based on new information, the Assessing Officer initiated reassessment proceedings once again. The AO held that the assessee had claimed depreciation on a property that was not used for business purposes and ought to have offered notional rental income. Consequently, depreciation was disallowed and notional rental income was added, resulting in a total addition of Rs. 96,41,159/-. The assessment was completed at a total income of Rs. 12,31,86,729/-. Aggrieved, the assessee appealed before the CIT(A), which upheld the reopening and additions. The assessee then appealed to the Tribunal raising several grounds including limitation and merits of the additions.…

Legal Issues

• 1. Whether the notice under section 148 was barred by limitation.
• 2. Whether there was a failure on the part of the assessee to disclose fully and truly all material facts.
• 3. Whether the reopening was based on permissible grounds.
• 4. Whether the addition of Rs. 54,90,410/- on account of depreciation was valid.
• 5. Whether the addition of Rs. 41,50,749/- on account of income from deemed let-out property was valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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