2009 (11) TMI 397

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....at the officer had no justification to reopen the original assessment. 2. We have heard the senior standing counsel appearing for the appellant and Sri Harishankar V. Menon appearing for the respondent. 3. The assessments involved are for the years 1996-97, 1998-99, 1999-2000 and 2000-2001. In the course of the relevant four previous assessment years, the assessee was engaged in the construction of a hospital building.  While completing the original assessment, the Assessing Officer accepted the accounts pertaining to investments in the construction of the building. However, after completion of original assessment, based on the returns filed, the Assessing Officer referred the building for valuation by the approved valuer. When t....

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....at the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion. What is required is 'reason to believe' but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reason-able person could have formed the requisite belief. Whether material would conclusively prove escapement of income is not the concern at that stage. This is so because the formation of the belief is within the realm of the subjective satisfaction of the Assessing Officer." 5. Based on the above finding the senior counsel contended that valuation report constitutes the basis for reopening because the Assessing Officer has examined the valuatio....