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2019 (6) TMI 1200 - AT - Wealth-taxReopening of assessment - escapement of wealth - reopening the assessment are based on DVO’s report - HELD THAT:- DVO’s report is not for the year under consideration and secondly, order of Commissioner under section 25(2) of the Act was in exercise of power for assessment year 2002-03. We find merit in the plea of assessee that the report of DVO is not for the relevant years which have been reopened under section 17(1) of the Act. In any case, in the reasons recorded reference is made to valuation as on 31.03.2001, whereas the DVO had valued the property upto 31.03.2003. AO has not applied the last valuation completed in the case of assessee i.e. on 31.03.2003 at ₹ 26.35 crores, but has referred to DVO’s value as on 31.03.2001 at ₹ 16.33 crores, being the basis for reopening the assessment. We find no merit in the exercise of jurisdiction by AO in this regard. It cannot be said that reopening of assessment in the hands of assessee is not based on DVO’s report. Though reference is made to order of Commissioner under section 25(2) of the Act, but the basis for passing aforesaid order was also DVO’s report, wherein the Assessing Officer had made reference to valuation of asset during the course of assessment proceedings, but no such valuation report was received and on a later date, order of revision was passed by Commissioner. Applying the ratio laid down in ACIT Vs. Dhariya Construction Company [2010 (2) TMI 612 - SC ORDER] we hold that reasons recorded for reopening the assessment cannot stand as the Assessing Officer had failed to apply his mind to the information collected, if any, and has failed to form a belief vis-à-vis reasons recorded for the relevant assessment years. re-assessment proceedings initiated in the case of assessee are without any basis and the consequent order passed under section 16(3) r.w.s. 17(1) of the Act do not stand - Decided in favour of assessee.
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