TMI Blog1993 (8) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... 147(b) was valid and in accordance with law. The assessee constructed a theatre the cost of construction of which was declared at Rs. 5,88,240 including the cost of projector, furniture, false ceiling, etc. This value was accepted in the assessment made by the Income-tax Officer. On a reference to the Departmental Valuation Cell (hereinafter referred to as DVC), it came to the notice of the Income-tax Officer that the value of the theatre was Rs. 5,23,000 for the civil work as against the value declared by the assessee at Rs. 3,46,507. He, therefore, invoking the provisions of section 147(b), issued a notice under section 148 for reopening the assessment. An appeal there against was preferred to the CIT (Appeals) before whom the assessee, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee, Sri K. Ranganathachari, submitted that the subsequent valuation report is not an information, within the meaning of section 147(b) which could entitle the Income-tax Officer to reopen the assessment. In support of his contention, he relied upon the following decisions : CIT v. Simon Carves Ltd. [1976] 105 ITR 212 (SC); Indian Eastern Newspaper Society v. CIT [1979] 119 ITR 996 (SC); Jawaharlal Daryavbuxmal's case; CWT v. Smt. Gulnar Marfatia [1986] 159 ITR 311 (Raj.); Tulsidas Kilachand's case; and Ram Das Kilachand's case. According to the learned counsel, the valuation report could at best be an estimate and not a concrete or definite fact which could constitute 'information'. Merely because the two value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties and considered the rival submissions. In our opinion, no fault can be found with the reopening of assessment. The report of the Valuation Officer obtained under section 55A of the Act, in our opinion, is an information for purposes of invoking jurisdiction under section 147(b) of the Act. "Information", as their Lordships of the Supreme Court in the case of Indian Eastern Newspaper Society held, means "instruction or knowledge derived from an external source concerning facts or particulars, or as to law, relating to a matter bearing on the assessment". Insofar as the word "information" means instruction or knowledge concerning facts or particulars, their Lordships observed that there is little difficulty. By its inherent nature, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to a fact on the basis of which it is open to the Wealth-tax Officer to reopen the assessment. Their Lordships further held that even assuming that the report of the Valuation Officer is only an opinion of that person or officer, in such an event also, that would be a fact within the meaning of that term occurring in section 3 of the Indian Evidence Act, 1872, and the same would thus be an information as to a fact to confer jurisdiction under section 17(1)(b) of the Wealth-tax Act. Their Lordships have considered the decision of the Supreme Court in the case of Simon Carves Ltd. relied upon by the learned counsel for the assessee. In any case, in the case of Simon Carves Ltd. two methods were available for an income-tax Officer for proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Valuation Officer's report could not form the basis of reassessment proceedings under section 17(1)(a) or section 17(1)(b) of the Act. This case is of no help to the assessee since the legality of the report under section 55A is not an issue before us. 8. The decision of the Bombay High Court in the case of Tulsidas Kilachand was under the Wealth-tax Act, and was rendered prior to introduction of provisions of section 16A of the W.T. Act which are in pari materia with the provisions of section 55A of the I.T. Act. It was not a case of valuation under the statutory provisions of the enactment. Same is the position in the rejection of Special Leave Petition in the case of Ram Das Kilachand. These cases are also of no help to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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