Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 950 - HC - Income TaxRe-opening of assessment of income u/s 148 of the Act – Held that:- The reassessment proceedings initiated by the revenue are nor sustainable - The Assessing Officer has to apply his mind to any information in form of the valuation report and must form a belief thereon that there is escapement of income - The opinion of the DVO is per se not an information for the purpose of reopening of an assessment - The Assessing Officer has to apply his mind to the report of the DVO and only if on application of mind, if he forms a belief that there is escapement of income, he can seek to reopen the assessment under section 147 of the Act. Relying upon Assistant Commissioner of Income-tax Versus. Dhariya Construction Co. [2010 (2) TMI 612 - Supreme Court of India] - For the report of the Valuation Officer to become a basis for the reopening, the Assessing Officer should have applied his mind to the report of the Valuation Officer - The Assessing officer has clearly not applied his mind to the report of the Valuation Officer - Perusal of the Balance Sheet of the Assessee for the year ending 31.03.2005 shows that the Assessee has shown an amount as an expenditure of capital nature on the Bayadgi Unit towards the School building - The Assessing Officer has taken the amount shown as nil - For the year ending 31.03.2006 the Assessee has shown an investment as expenditure of capital nature on the Bayadgi unit and the value of the school building as on 31.03.2006 – thus, the assessing officer has merely intended to revisit the concluded assessment and it is a clear case of change of opinion which is not permissible in law – Decided in favour of Assessee.
|