COMMISSIONER OF INCOME TAX Vs. PAUL MERCHANTS LTD

JUDGEMENT

(1.) THIS appeal by the Revenue under S. 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 S. 147(a) of the IT Act, 1961, was validly initiated, and (ii) whether the assessee 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.) 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 vs. Kelvinator of India Ltd. (2002) 174 CTR (Del)(FB) 617 : (2002) V AD (Del) 768 (FB)]. Even otherwise, insofar as this Court is concerned, it has been held that an assessee is entitled to higher depreciation in respect of the leased out vehicles used in the business of running them on hire by the assessee himself or by the third party. [See CIT vs. Bansal Credits Ltd. : ITA No. 16 of 2002, decided on 13th Nov., 2002] [reported at (2003) 179 CTR (Del) 23-Ed.].