TMI Blog2008 (8) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... as completed on a total income of ₹ 2,34,1007- under Section 143(3) of the Income Tax Act. Subsequently notice under Section 148 of the Income Tax Act, hereinafter referred to as the Act, was issued and fresh assessment proceedings were started. 2. The assessee Company had constructed the Warehouse and declared its cost of construction at ₹ 22,89,737/- in the assessment year 1983-84. The Warehouse was constructed between the period 1.10.1977 to 30.9.1983. The matter was referred to the departmental valuation cell and the Departmental Valuer determined, originally the cost of construction at ₹ 71,42,000/- but it was reduced in the second valuation report to ₹ 36,03,300/-. 3. On the basis of the valuation report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter further in appeal before the Patna Bench of Income Tax Appellate Tribunal, hereinafter referred to as the Tribunal. The Tribunal upheld the order of the Commissioner of Income Tax (Appeal) so far as it related to reopening of the assessment under Section 147 of the Act. In relation to cost of construction the Tribunal observed that since the claim of the assessee that it maintained proper books of account and each and every expenses of the cost of construction are entered in the books of account, directed the Assessing Officer to re-examine the books of account of the assessee. While doing so, the Tribunal observed that if there are no effective defects in the books of account relating to the cost of construction, the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is represented by Mr. Harshwardhan Prasad. 9. It is common ground that answer to the first question referred for our opinion at the instance of the assessee, if answered in its favour, answer to the other questions shall be rendered academic. 10. Mr. Jain, contends that Departmental Valuer's report is not information, so as to enable the Assessing Officer to exercise the power under Section 148 of the Act. He points out that there is no provision under the Act, which gives the departmental valuer's report any special status. According to him departmental valuer's report is nothing but a piece of evidence and its value is to be appreciated like any other evidence. He points out that distinction has to be made between a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort is only an opinion of a valuer. The same does not amount to information within the meaning of Section 147(b) nor it can form a ground for reason to believe that the assessee had failed to disclose his income fully and truly within the meaning of Section 147(a) of the Act. The condition precedent for assumption of jurisdiction under Section 147(a) of the Act is reason to believe of the Income tax Officer. If that be so, then a report or information of a valuer cannot substitute the words reason to believe of the Income Tax Officer. 13. Yet another decision on which reliance has been placed is the decision of the Bombay High Court in the case of Commissioner of Income Tax vs. Vinod Danchand Ghodawat (247 ITR 448) in which it has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on sufficient for exercise of the power of reassessment under the Act. In support of the submission, reliance has been placed on a decision of the Andhra Pradesh High Court in the case of Daulatram and Others vs. Income Tax Officer and Other (181 ITR 119). 17. Having appreciated the rival submission, we find substance in the submission of Mr. Jain and the decisions relied on clearly support his contention. 18. In our opinion, the valuation report submitted by the Departmental Valuation Officer, in the absence of any statutory provision placing the same on a higher pedestal, is nothing more than a piece of opinion expressed by him and that alone cannot constitute an information so as to give the Assessing Officer an apprehension to com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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