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TMI Blog2013 (1) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... ct") against the order dated 31.5.2006, Annexure A.III passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh in ITA No.377/CHANDI/2004 and ITA No.716/CHANDI/2004 for the assessment year 1993-94, claiming following substantial question of law:- "Whether on the facts and in law, the Hon'ble Income Tax Appellate Tribunal was justified in treating the reopening of assessment on the basis of report from District Valuation Officer under Section 147 as invalid?" 3. Briefly the facts as narrated in the appeal may be noticed. The assessee is a company. It filed its return of income for the assessment year 1993-94 on 3.12.1993 declaring net loss of Rs.66,826/- which was processed under Section 143(1)(a) of the Act on 25.3.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal on the issue of reopening of assessment under Sections 147/148 of the Act. Vide order dated 31.5.2006, Annexure A.III, the Tribunal treated the reopening of assessment on the basis of DVO's report as invalid and dismissed the appeal of the revenue regarding additions made by the Assessing Officer with the view that those additions were made by the Assessing officer only after reopening which had been held to be invalid. The appeal filed by the assessee was allowed. Aggrieved thereby, the revenue has filed the present appeals. 4. We have heard learned counsel for the revenue and perused the record. 5. Learned counsel for the revenue submitted that the Tribunal was in error in setting aside the re-assessment proceedings by holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60,71,138/- upto the Financial year 1994-95. The company has shown cost of construction in its books at Rs. 15,33,816/- as against the total cost estimated at Rs. 20,09,199 for the Assessment year 1993-94. The assessment for the Assessment year 1993-94 has been made under section 143(1) on total of Rs. 66,826/- vide order dated 25.3.94. I have, therefore, reason to believe that income to the extent of Rs.4,75,383/- chargeable to tax has escaped assessment for the Assessment year 1993-94. Issue notice under Section 148 of IT Act, 1961'. From the above, it would be clear that the sole basis for reopening the assessment by the Assessing officer was the cost of construction estimated on the basis of the DVO's report. It is also not in dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. 5.2 Similarly the Hon'ble Jurisdictional High Court in the case of CIT v. Smt.Usha Mathur (2001) 252 ITR 179 had held - 'that when the assessment was made under section 143(1)(a), reopening on the basis of valuation cell's report could not be made and no addition could have been made which amounts to review of the earlier order'. 5.3 Hon'ble Madhya Pradesh High Court on a similar issue in the case of CIT v. S.R. Construction, (2002) 257 ITR 503 has held as under:- 'that the Assessing officer had considered the valuation put by the assessee and accepted it on the basis of the account books and other relevant document produced by the assessee. The Assessing Officer had found no defect. Therefore, the action taken by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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