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2021 (11) TMI 855 - AT - Income TaxValidity of Reopening of assessment u/s 147 - addition on the basis of valuation report of District Valuation Officer (DVO) - reopening of assessment was beyond four years - HELD THAT:- Since the allegation of escapement of income is more than ₹ 1 lakh, the reopening cannot be said to be invalid in view of the provision of Section 149(1)(b) of the Act. Thus, the ground of maintainability of the reassessment proceeding as raised by the assessee fails. Reopening of assessment on DVO’s report - Where the AO completed assessment under Section 143(3) making certain addition in respect of unexplained investment he could not reopen the said assessment for enhancement of said addition merely on the basis of the report of the DVO. In this regard, we are enlightened by the ratio laid down in AKSHAR INFRASTRUCTURE PVT LTD [2017 (3) TMI 393 - GUJARAT HIGH COURT]. Also in MUNIR ISMAIL VORAJI [2017 (5) TMI 684 - GUJARAT HIGH COURT] where on the basis of DVO’s report reopening notice was issued and challenged before the Court. It was further found that no further enquiry was conducted to find out fair market value, neither was there any tangible material available to the AO to form an opinion that income chargeable to tax has escaped assessment. Ultimately such reopening of assessment merely on the basis of the DVO’s report was held to be unjustified. We find similar fact in the case in hand which has been failed to be controverted by the Ld. DR before us. Therefore, we find no merit in the reopening the assessment under Section 147 of the Act merely on the basis of the DVO’s report. - Decided in favour of assessee.
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