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2015 (5) TMI 725 - AT - Income TaxUnexplained investment - addition u/s 69 - Held that:- Incidentally in the case under dispute, the AO had neither applied his mind nor formed a belief, but, merely came to the conclusion, based on the report of the approved valuer found during the search operation at the premises of Tinna Group of cases, that the value of the land under dispute was shown highly understated and, accordingly, initiated proceedings u/s 147 of the Act. Moreover, in the course of assessment proceeding of the seller, the impugned property was referred to the DVO of the Department for valuation and he arrived at the value of ₹ 1.64crores which was much below than the price mentioned in the sale deed of the impugned property. The valuation report being only an opinion, the same cannot be a sole basis for making an addition without any corroborative evidence to hold that there is an undisclosed payment in purchase of the impugned property, especially, when the sale prices mentioned in the sale deeds are much above the guideline/circle rate.Taking into account all the facts and circumstances we are of the view that the CIT (A) was not justified in sustaining the addition of ₹ 3,45,75,000/-made by the AO u/s 69 of the Act as the AO had solely placed reliance on the report of the approved valuer. It is ordered accordingly. Reopening of assessment - Held that:- In the course of original assessment proceeding, the AO was made aware of the purchase of the impugned property and the sale deed was duly enclosed in the assessee’s reply to the AO’s query. The only reason for the reopening of the assessment was the alleged seizure of the valuation report of the approved valuer from the premises of the sellers of the impugned property. The valuation report of the approved valuer was nothing but an opinion expressed by him. Therefore, when all the necessary details were filed and taken note of by the AO during the course of the original assessment proceeding pursuant to the search and seizure action conducted in the premises of the assessee, the reopening of the assessment was merely based on change of opinion of the AO. For taking the above view, we are fortified by the judgments of the Hon’ble Jurisdictional High Court in the cases of (i) Global Signal Cables (India) (P) Ltd v. DCIT (2014 (10) TMI 547 - DELHI HIGH COURT) and (ii) CIT v. Usha International Ltd reported in (2012 (9) TMI 767 - DELHI HIGH COURT). Also see Mahashay Chunnilal v. DCIT [2014 (2) TMI 950 - DELHI HIGH COURT]. - Decided partly in favour of assesse.
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