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[2009] 309 ITR 110 (MAD.) HIGH COURT OF MADRAS Commissioner of Income-tax v. Cholamandalam Investment and Finance Co. Ltd. K. RAVIRAJA PANDIAN AND MRS. CHITRA VENKATARAMAN, JJ. TAX CASE (APPEAL) NO. 1387 OF 2007 OCTOBER 31, 2007 Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non disclosure of primary facts Where while making original assessment Assessing Officer had called for basic details regarding certain purchases, and assessee had furnished those details and on that basis, assessment had been completed allowing depreciation on assets so purchased holding that purchase of said items did not fall under category of 'sale and lease back transaction' reopening of assessment after expiry of four years from end of relevant assessment years to disallow depreciation on such assets was not justified [Assessment year 1996-97] [In favour of assessee] CIT v. Cholamandalam Investment & Finance Co. Ltd. [2009] 309 ITR 110(Mad.) While making the original assessment, the Assessing Officer had called for the basic details regarding two purchases. After taking into consideration the details furnished by the assessee, the Assessing Officer came to the conclusion that the purchase of two items and leasing them to related parties did not fall under the category of 'sale and lease back transaction' and, therefore, the Assessing Officer granted depreciation on them. Later the Assessing Officer reopened the assessment and the Assessing Officer disallowed the depreciation in respect of machineries got back under lease from two parties. Held that while making the original assessment the Assessing Officer had called for the basic details regarding certain purchases, and the assessee had furnished those details and, on that basis, the assessment had been completed holding that did not fall under the category of 'sale and lease back transaction'. As there was no failure to disclose material facts necessary for assessment, the reassessment proceedings were not justified. J. Nareshkumar for the Appellant. JUDGMENT K. Raviraja Pandian, J.-The appeal is filed against the order of the Income-tax Appellate Tribunal, Madras "A" Bench, dated November 23, 2006, made…

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