INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Non-application of mind by AO -

Assessee filed appeal against reopening of assessment carried out under the Computer Aided Scrutiny Selection (CASS) as notice for reopening was solely based on valuation report. Held: There was nothing on record to establish that except for the valuation report there was any other material even prima facie, indicating application of mind by the AO in arriving at his conclusion, necessitating reopening under section 147 of the assessment. The difference in valuation of the property in the two reports was also not substantial. During the course of the proceedings, much prior to the passing of the order accepting his return, the assessee had submitted the valuation report from an approved valuer and this was never objected to or rejected. Assessee had disclosed full particulars. Despite the assessee having submitted his valuation report, why the request calling for a valuation report was made only on 19-10-2006 and why the report reached the officer on 5-11-2007, were all questions which were not clear from the record. Without meeting the essential ingredients of application of mind to the various material, necessitating reopening of the assessment was missing. Hence, order passed under section 143(3)/147 was set-aside and quashed.

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2004-05

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