Hotel Mount View v. CIT & Ors.

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers2006 TaxPub(DT) 0622 (Cal-HC) : (2006) 010 (I) ITCL 0036 : (2006) 280 ITR 0051 : (2005) 198 CTR 0435 : (2005) 148 TAXMAN 0532 Hotel Mount View v. CIT INCOME TAX ACT, 1961 Reassessment - Full and true disclosure -Reference under section 55A *Held:Valuation report obtained under section 131(1)(d) could not be the basis to held that assessee had failed to disclose his income truly and correctly, that too when basis of valuation was obtained upon a reference under section 55A subsequent to re-opening of assessment under section 147. Since, time of the assessment under section 143 the alleged valuation report obtained by AO subsequent to the re-opening of the assessment under section 147 was not there. Therefore, after having re-opened the assessment the evidence cannot be fished out through reference to a fresh valuation which was merely an opinion and which was not a conclusive proof to establish escapement of assessment unless being supported by other supportive and corroborative evidence. Income-tax Act, 1961,* Section 147 A.Y. :1993-94 Decision: In favour of assessee. Case Law Analysis:Smt. Tarawati Debi Agarwal v. ITO [1986] 162 ITR 606/[1987] 30 Taxman 589 (Cal.) [Para2.2], Durga Sharan Udho Prasad v. CIT [1976] 103 ITR 270 (Pat.) [Para 2.2], Indian Oil Corpn. v. ITO [1986] 159 ITR 956/ 26 Taxman 336 (SC) [Para 2.2] and Smt. Amiya Bala Paul v. CIT [2003] 262 ITR 407/ 130 Taxman 511 (SC) [Para 2.3]. Hotel Mount View v. CIT SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2006 TaxPub(DT) 0622 (Cal-HC) : (2006) 010 (I) ITCL 0036 : (2006) 280 ITR 0051 : (2005) 198 CTR 0435 : (2005) 148 TAXMAN 0532

Hotel Mount View v. CIT

INCOME TAX ACT, 1961

Reassessment - Full and true disclosure -Reference under section 55A

Held:Valuation report obtained under section 131(1)(d) could not be the basis to held that assessee had failed to disclose his income truly and correctly, that too when basis of valuation was obtained upon a reference under section 55A subsequent to re-opening of assessment under section 147. Since, time of the assessment under section 143 the alleged valuation report obtained by AO subsequent to the re-opening of the assessment under section 147 was not there. Therefore, after having re-opened the assessment the evidence cannot be fished out through reference to a fresh valuation which was merely an opinion and which was not a conclusive proof to establish escapement of assessment unless being supported by other supportive and corroborative evidence.

Income-tax Act, 1961, Section 147

A.Y. :1993-94
Decision: In favour of assessee.

Case Law Analysis:Smt. Tarawati Debi Agarwal v. ITO [1986] 162 ITR 606/[1987] 30 Taxman 589 (Cal.) [Para2.2], Durga Sharan Udho Prasad v. CIT [1976] 103 ITR 270 (Pat.) [Para 2.2], Indian Oil Corpn. v. ITO [1986] 159 ITR 956/ 26 Taxman 336 (SC) [Para 2.2] and Smt. Amiya Bala Paul v. CIT [2003] 262 ITR 407/ 130 Taxman 511 (SC) [Para 2.3].

Hotel Mount View v. CIT