TMI Blog1993 (8) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 5,88,240 including the cost of projector, furniture, false ceiling, etc. This value was accepted in the assessment made by the ITO. On a reference to the Departmental Valuation Cell (hereinafter referred to as DVC), it came to the notice of the ITO 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 s. 147(b), issued a notice under s. 148 for reopening the assessment. An appeal thereagainst was preferred to the CIT(A) before whom the assessee, it appears, did not press the ground relating to initiation of proceedings under s. 147(b). The Tribunal, however, restored the matter back to the file of the CIT(A) to adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport of his contention, he relied upon the following decisions: CIT vs. Simon Carves Ltd. 1976 CTR (SC) 418 : (1976) 105 ITR 212 (SC); Indian Eastern Newspaper Society vs. CIT (1979) 12 CTR (SC) 190 : (1979) 119 ITR 996 (SC); Jawaharlal Daryavbuxmal vs. CIT; CWT vs. Smt. Gulnar Marfatia (1986) 159 ITR 311 (Raj); Tulsidas Kilachand vs. D.R. Chawla; D.R. Chawla, WTO vs. Ram Das Kilachand (Short Report) (1983) 141 ITR (St) 47. 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 valuers have differed on the value of a particular item, it would not be sufficient to invoke the provisions of s. 147(b). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of assessment. The report of the Valuation Officer obtained under s. 55A of the Act, in our opinion, is an information for purposes of invoking jurisdiction under s. 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". In so far 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 fact has concrete existence. It influences the determination of an issue by the mere circumstance of its r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 s. 3 of the Indian Evidence Act, 1872, and the same would thus be an information as to a fact to confer jurisdiction under s. 17(1)(b) of the WT 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 ITO for processing an assessment one of which was followed by the ITO in completing the original assessment and in that context their Lordships of the Supreme Court held that there was no error in following one of the two p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Tulsidas Kilachand was under the WT Act and was rendered prior to introduction of provisions of s. 16A of the WT Act which are in pari materia with the provisions of s. 55A of the IT 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. 9. In the circumstances, we are of the opinion that the ITO was justified in reopening the assessment under s. 147(b) on the basis of the valuation report under s. 55A of the Act and the CIT(A) was justified in dismissing the assessee's appeal. The quantum appeal before us is, therefore, dismissed. 10. In the penalty appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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