Reopening u/s 147 after 153A due to DVO report

[RAJESH SANGHVI]

The assessment of the builder assessee were completed u/s 153A. During asst proceedigns AO rejected books and made a reference to the DVO u/s 142A to determine cost of constructon. Wihtout DVO's report the asst made u/s 153A. The assessee won till  ITAT. Now DVO report has come in which cost of cosntruction is take 25 lacs more than what the assessee has shown. Can AO reopen based on this. Before the ITAT itwas contested that DVO reference cannot be used to determine cost of construction because 69C is not covered u/s 142A. The ITAT appreciated this point.

[DR.MARIAPPAN GOVINDARAJAN]

What is the outcome of the ITAT?

AI Summary

Reopening assessments after protective assessment depends on admissibility of DVO valuation report for construction cost in reassessment. Reopening an assessment after a protective assessment is raised where a later DVO valuation report shows higher construction costs than declared. Key issues are whether the assessing officer can reopen based on the belated DVO report and whether a DVO reference under the valuation-reference provision is competent to determine construction cost when the applicability of the unexplained income head was contested on appeal.