TMI Blog1982 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... e I.T. Act ? " The material facts giving rise to this reference briefly are as follows: The assessee is an individual and the assessment years in question are 1964-65 to 1966-67. The assessee had disclosed that he had purchased plot and constructed a residential house thereon and that the construction had commenced in the year 1963 and was completed in the year 1966-67. The assessee had further disclosed the details of construction and investment. No enquiry was made by the ITO about the cost of construction and the assessment was completed. Later on, the ITO referred the question of valuation to the departmental valuation cell, which estimated the cost of construction at Rs. 99,360. On the basis of the report of the departmental valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal urged before the Tribunal in the memorandum of appeal filed by the department was that the AAC had erred in holding that the proceedings initiated under s. 147(a) were invalid. In these circumstances, it is difficult to appreciate the following observation of the Tribunal: " Under clause (b), any kind of information obtained by the ITO is sufficient to reopen the assessment even if originally a proper assessment had been made, but for any reason whatsoever, income chargeable to tax had escaped assessment. This clause is obviously applicable to the present case because if the amount of investment incurred by the assessee for construction of the house was larger than the one disclosed by him, the, income of the assessee from undisclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of all kinds. Lastly, the ITO was also informed how the investment was made year-wise by withdrawing the funds from different firms. For the assessment year 1966-67, the house was shown as S.O.P. and the income declared from the said S.O.P. was included in the total income of the year. All this information was more than sufficient for the ITO to conclude whether or not the investment disclosed by the assessee was acceptable. None of the material facts or primary facts disclosed by the assessee has been found to be false by the ITO." In view of the aforesaid facts disclosed by the assessee, it is difficult to appreciate what further obligation was cast by law on the assessee in the matter of disclosure of material facts necessary for his ..... X X X X Extracts X X X X X X X X Extracts X X X X
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