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2018 (1) TMI 510 - AT - Income TaxValidity of reopening the assessment U/s 147/148 on the basis of DVO’s report in another case - no assessment and/or reassessment proceedings are pending - AO empowered to refer to the Valuation Officer - Held that:- There was no income tax proceedings pending on the date of reference made to the DVO. The assessment was reopened on the basis of DVO’s report in the case of Mr. Tung Kind Liu and not in the case of the assessee. We note that reopening the assessment U/s 147/148 of the Act on the basis of DVO’s report in another case was not valid. In assessee’s case under consideration, we are of the view that no valid reasons were recorded by the Assessing Officer. If the AO failed to record the valid reasons then reassessment would be bad in law. We are of the view that when the notice under section 148 has been issued and addition has been made by adopting the value estimated by the Valuation Officer and when we found that the AO is not empowered to refer any property for valuation in a case where no assessment proceedings or reassessment proceedings of the assessee is pending before him, there is no justification to make any addition in such cases. CIT(A) is correct in law as he relied the case of CIT vs. Umiya Co-op. Housing Society Ltd. (2006 (7) TMI 200 - GUJARAT HIGH COURT), wherein it was held that where no assessment and/or reassessment proceedings are pending, AO is not empowered to refer to the Valuation Officer, any matter for ascertaining cost of construction of any property of an assessee. Therefore, we are of view that reference made to the DVO by the AO was behind his jurisdiction - Decided against revenue
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