https://www.taxtmi.com/caselaws?id=310764 The ITAT Mumbai held that reopening assessment under section 147 based solely on a DVO report is invalid, as the ITO must have independent "reason to believe" that income escaped assessment, which cannot be substituted by a third party's opinion. The tribunal quashed the reassessment notice issued under section 148 and consequent additions. Various other issues were decided in favor of the assessee including additional depreciation under section 32(1)(iia), deduction under section 80IA for infrastructure units, deletion of MODVAT credit addition, and treatment of sales tax incentives as capital receipts. The tribunal directed recomputation of capital gains without relying on DVO's fair market value determination. en-us Tue, 28 Feb 2023 00:00:00 +0530 Sat, 11 Nov 2023 08:26:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310764 The ITAT Mumbai held that reopening assessment under section 147 based solely on a DVO report is invalid, as the ITO must have independent "reason to believe" that income escaped assessment, which cannot be substituted by a third party's opinion. The tribunal quashed the reassessment notice issued under section 148 and consequent additions. Various other issues were decided in favor of the assessee including additional depreciation under section 32(1)(iia), deduction under section 80IA for infrastructure units, deletion of MODVAT credit addition, and treatment of sales tax incentives as capital receipts. The tribunal directed recomputation of capital gains without relying on DVO's fair market value determination. Case-Laws Income Tax Tue, 28 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310764