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2017 (6) TMI 785 - HC - Income TaxReopening of assessment - reference to DVO - determination of value of property - Held that:- . Since the Assessing Officer relies only on the DVO's report it is difficult to appreciate how he contends that the present petitioner had made any unaccounted investment in construction. If we peruse the reasons recorded by him more minutely, we find that a rather unconventional approach was adopted by the Assessing Officer to project the cost of construction over the entire span of financial year 2005-06. AO had to have tangible material at his command to enable him to form a belief that income chargeable to tax had escaped assessment. His belief is based on presumption of extrapolation even otherwise wholly impermissible on the basis of materials on record. To reiterate, according to the report of the DVO, the entire investment of ₹ 1.82 crores in construction was made before 01.07.2005. There was thereafter, no question of apportioning any portion thereof during the period after 20.09.2005. In any case, the same could not have been done without basis or further opinion available with the Assessing Officer. Only in the present case, we are concerned with the reopening of an assessment which was previously framed after scrutiny and whet her such notice is issued beyond a period of four years from the end of the relevant assessment year. - Decided in favour of assessee.
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