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2020 (7) TMI 681 - AT - Income TaxReassessment proceedings u/s 147/148 - notice issued in the name of husband of the assessee - HELD THAT:- A fatal mistake cannot be cured u/s 292B and therefore, for this reason alone, notice u/s 148 and subsequent proceedings should be quashed. Re-assessment proceedings were initiated to assess the escaped income of ₹ 2,89,000/- on account of unexplained investments. No addition has been made by the Assessing Officer towards any unexplained investment. Therefore, the very reason for which re-assessment proceedings were initiated were found satisfactorily explained and no addition has been made, than in such a scenario, any other addition made by the Assessing Officer by way of disallowance of the cost of construction cannot be sustained. Addition under the head income from the head “capital gains” whereby denied the deduction towards the cost of construction - HELD THAT:- We find that the valuer has stated the year of construction as 2008 and has applied the PWD rates for valuation of cost of construction as relevant for year 2008. Therefore, where there is no construction carried out during the financial year 2009-10 relevant to impugned assessment year, there is no question of any investment made in such property during the year and question of any unexplained investment made during the year under consideration, as so stated in the reasons so recorded, thus, doesn’t arise for consideration. Where the very basis for which reassessment proceedings were initiated doesn’t survive, there is no basis for making the impugned addition towards failure to substantiate the cost of construction so claimed by the assessee. We find that the cost of construction is supported by the Valuer report which has determined the cost of constriction applying the PWD rates at ₹ 713,150/- as against cost of construction claimed by the assessee amounting to ₹ 639,000/-. In the result, the addition made is hereby deleted and the matter is decided in favour of the assessee.
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