2012 (6) TMI 676

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..... p; "1. Whether, on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal was justified in law in holding that the reopening of assessment under section 147 of the Act based on the valuation report was not valid, whereas as per the valuation report income to the tune of Rs. 16,91,200 has escaped assessment ?   2. Whether, on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal was justified in holding that the report of the Departmental Valuation Officer is 'information or not' for initiating proceedings under section 147 even after the amendment in section 147 with effect from April 1, 1989 ?"   2. The assessee had filed a return of income for the assessme .....

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..... of the Act. The Tribunal, after examining the matter, accepted the plea of the assessee and, accordingly, allowed the appeal, vide order dated September 30, 2002. 4. The issue that arises in this appeal is whether the Assessing Officer could have reopened an assessment on the basis of the report of the DVO. Learned counsel for the Revenue, however, could not refer to any provision except section 55A of the Act on the basis of which, it could be pleaded that the report of the DVO was valid for estimating the correct cost of the construction and investment in the house in question. He also made efforts to draw support from the provisions of section 142A of the Act introduced by the Finance (No. 2) Act of 2004, with effect from November 15, 1 .....

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..... cribed under the proviso to section 142A of the Act and the appeal under section 260A of the Act being maintainable before the High Court only on substantial question of law, therefore, it could not be said to be continuation of the assessment proceedings within the meaning of the proviso to section 142A of the Act. The Assessing Officer, thus, had no power to refer the matter to the DVO. Similar view has been taken by Delhi and Calcutta High Courts."   8. In view of the above, we hold that section 142A of the Act is not attracted to the facts of the present case and, thus, no reliance can be placed upon that. Consequently, the initiation of reassessment proceedings on the basis of report of the DVO cannot legally be sustained.   .....

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