Commissioner Of Income Tax vs Paul Merchants Ltd.
2002 Latest Caselaw 2063 Del

JUDGMENT

1. This appeal by the Revenue under Section 260A of the IT Act, 1961 (in short the Act) is directed against the order, dt. 21st Nov., 2001, passed by the Tribunal, New Delhi in ITA 2089/Del/2001, pertaining to the asst. yr. 1995-96.

2. Two main issues namely, (i) whether action under Section 147(a) of the IT Act, 1961, was validly initiated, and (ii) whether the assessed was entitled to claim depreciation @ 40 per cent on the vehicles which had been leased out by it to third parties, were raised before the tribunal.

3. While allowing the appeal of the assessed, the Tribunal has noted that in the earlier assessment years as well as in the succeeding assessment years depreciation was being allowed to the assessed @ 40 per cent, which was done while completing assessment under Section 143(3) of the Act in the present assessment year also. The Tribunal has recorded a categorical finding that no new information or material had come to the notice of the AO to form the requisite belief that income for the relevant assessment year, on account of grant of excessive depreciation, had escaped assessment.

4. It is well settled that a mere change of opinion does not clothe the AO with the jurisdiction to reopen a completed assessment [See : CIT v. Kelvinator of India Ltd. (2002) V AD (Del) 768 (FB)]. Even otherwise, insofar as this Court is concerned, it has been held that an assessed is entitled to higher depreciation in respect of the leased out vehicles used in the business of running them on hire by the assessed himself or by the third party. [See CIT v. Bansal Credits Ltd. : ITA No. 16 of 2002, decided on 13th Nov., 2002].

5. In this view of the matter, the view taken by the Tribunal cannot be faulted. No question of law, much less a substantial question of law, survives for our consideration.

The appeal is accordingly dismissed.