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2022 (4) TMI 806 - AT - Income TaxReopening of assessment u/s 147 - difference pointed out by the DVO in his valuation report - AO has formed his belief for escapement of income on the basis of the incriminating documents/files impounded during the survey proceedings - HELD THAT:- Assessment, on the basis of DVO's report, cannot be reopened as held by the Hon'ble Supreme Court in the case of M/s Dhairya Construction Co. [2010 (2) TMI 612 - SC ORDER] and in the case of Sargam Cinema [2009 (10) TMI 569 - SC ORDER] Amount of escaped assessment is not emanating from any evidence on record found during survey but it is the difference pointed out by the DVO in his valuation report. The report of DVO is not an information for re-opening assessment u/s 147 of the Act. The AO has to apply his mind to the information if any collected and must form a belief on them. As we have noted earlier that assessment, on the basis of DVO's report, cannot be reopened as held by the Hon'ble Supreme Court in the case of M/s Dhairya Construction Co. [2010 (2) TMI 612 - SC ORDER] therefore, it is abundantly clear that reassessment proceedings initiated by the assessing officer is bad in law and therefore should be quashed. CIT(A) during the appellate proceedings, observed that there were no such discrepancies in the construction expenses - the assessing officer is referring to certain material without describing them and quantifying the amounts contained therein. There should be a live link between the material coming to the notice of the Assessing Officer and the formation of belief regarding the escapement of income. In the present case, there is no material except the valuation report of DVO which has a live link and base for the assessing officer to form a belief regarding the escapement of income. Rather, the natural conclusion which can be drawn is that the assessing officer has re-opened the assessment on the basis of DVO's valuation report - we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue are dismissed.
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