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2017 (6) TMI 137 - ITAT CHANDIGARHReopening of assessment - cost estimated by the DVO - difference in the cost of construction declared by the assessee and estimated by the DVO - Held that:- It is an admitted fact that during the assessment proceedings for assessment year 2010-11, the immovable property of the assessee was referred for valuation to DVO who has given his report which is reproduced in the assessment orders and the difference in cost was taken into consideration as reported by the assessee and the cost estimated by the DVO, there were no other material available with the AO to reopen the assessment in the matter. Hon’ble Supreme Court in the case of ACIT Vs. Dhariya Construction Co. [2010 (2) TMI 612 - Supreme Court of India] held “ The opinion given by the District Valuation Officer is not per se information for the purpose of reopening an assessment under section 147 of the Income-tax Act, 1961.”. Therefore, the issue is covered in favour of the assessee by the above judgment and as such there is no justification for the AO to reopen the assessments in the matter. Reasons recorded under section 148 of the Income Tax Act reflect the arbitrary use of powers conferred under section 147 of the Act. - Decided in favour of assessee.
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