AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2012 (12) TMI 805
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....cts in all the captioned assessment years are identical. However, reference is being made to the facts in ITA No.1016/Chd/2011 for adjudicating the issue. 3. The preliminary issue raised by the assessee in all the captioned assessment years is vide ground No. 1 which reads as under: "1 That in the facts and circumstances of the case, the ld. CIT(A) has erred both in law and facts that the re-assessment proceedings were initiated u/s 148 on the basis of survey u/s133-A and not on the basis of valuation report of the DVO." 4. The brief facts of the case are that survey under section 133A of the Act on 3.12.2003 was carried out at the business premises of Shri Sukhdev Singh at Beri. The statement of Shri Sukhdev Singh Proprietor was recorde....
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....nse the assessee furnished return of income declaring income from salary at Rs.1,13,750/-. In the course of re-assessment proceedings the learned 3 A.R. for the assessee pointed out that notice issued under section 148 of the Act was not valid as it was not issued in the proper format. The objection of the learned A.R. for the assessee was not accepted by the Assessing Officer as the assessee had filed return of income in compliance to the notice under section 148 of the Act. The learned A.R. for the assessee beside objecting to the determination of valuation by the DVO requested that the DVO be called in order to enable the valuer of the assessee to have discussion with regard to the valuation made of the property. The Assessing Officer r....
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.... held by the CIT (Appeals) as follows: "The judgements cited by the appellant regarding initiation of proceedings u/s 147 only on the basis of DVO's report are not related to the facts of the present case as in the case of the appellant, survey u/s 133A was conducted where statements of appellant and her husband were recorded on the basis of evidence gathered during such survey. In view of the same there is no merit in these grounds of appeal and the same are dismissed." 6. The assessee by way of preliminary objection has raised the issue of initiation of the proceedings under section 148 of the Act. The learned A.R. for the assessee pointed out that survey on 3.12.2003 was conducted at the premises of the husband of the assessee, who was....
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.... letter was for the assessment proceedings relating to assessment years 2002-03, 2004- 05 and 2005-06 and no such letter was forwarded for assessment year 2001- 02, but the issue was identical in all the assessment years. The learned A.R. for the assessee, however, submitted that in view of the ratio laid down by the Hon' ble Supreme Court in ACIT Vs. Dhariya Constructions Co. [328 ITR 515 (SC)] and in ITO Vs. Shree Ram Verma [(2010) 134 TTJ (Lucknow)(UO)73], the re-assessment proceedings initiated were bad in law. 7. The learned D.R. for the Revenue pointed out that no said issue was raised before the CIT (Appeals) and also submitted that the issue stands covered by the ratio laid down by the Hon'ble Supreme Court in ACIT Vs. Rajesh Jhave....
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....to her and she was receiving rent for the said building both from her husband and another tenant for the past more than one and half years. Nothing incriminating against the assessee was found during the course of survey conducted at the business premises of the husband of the assessee. The assessee was requisitioned to furnish the amount invested in the cost of construction of the building and the sources thereof. The Assessing Officer also referred the matter of valuation of the cost of construction of the building to the DVO under section 142A of the Act. The assessee had filed the report of Registered Valuer and there was variation in the fair market value estimated by the Registered Valuer on behalf of the assessee and fair market valu....
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....d Valuer in relation to the cost of construction of the property owned by the assessee. 11. Similar issue of reopening the assessment under section 147 of the Act on the basis of Valuation Report of DVO arose before the Apex Court. The Hon'ble Supreme Court in ACIT Vs. Dhariya Constructions Co. (supra) have held as under: "The opinion of the DVO per se is not an information for the purposes of reopening assessment under section 147 of the Income Tax Act, 1961. The Assessing Officer has to apply his mind to the information, if any, collected and must form a belief thereon." 12. Further the Lucknow Bench in ITO Vs. Shree Ram Verma (supra) have also followed the principle laid down by the Hon'ble Supreme Court in ACIT Vs. Dhariya Constructi....