Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 351 - AT - Income TaxValidity of reopening of assessment u/s 147 – Reopening made on the basis of DVO’s report - Held that:- The assessments were reopened on the basis of the DVO’s report and the assessments were completed u/s 147 read with 144 of the Act and in some cases under section 143 of the Act – in assessee’s own case it has been already decided that reopening was done on the basis of the DVO’s report, therefore, the reopening is bad in law – AO was of the believe that some income has escaped assessment is only on the basis of DVO report because he has worked out the difference in the amount of investment as per the investment declared by the assessee and as per DVO report – CIT(A) has given a clear finding that there was no reason available with the AO except the report of a valuer which showed the valuation of the building higher than the investment disclosed by the assessee - the only basis regarding the AO’s belief that some income has escaped assessment, is DVO’s report only – relying upon Assistant Commissioner of Income-tax Vs Dhariya Construction Co. [2010 (2) TMI 612 - Supreme Court of India] wherein it was held that the opinion given by the District Valuation Officer is not per se information for the purpose of reopening an assessment u/s 147 of the Income-tax Act - in all the AYs the reopening was done by the AO on the basis of same DVO’s report - once reference itself is held to be invalid or bad, the DVO’s report obtained consequent thereto cannot be used for reopening of the assessment – thus, the reopening is bad as the reopening of the assessment on the basis of the valuation report – Decided against revenue.
|