TaxTMI 
TaxTMI 
2001 (10) TMI 26
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....680, Rs.48,716 and Rs.84,168 for the assessment years 1990-91, 1991-92 and 1992-93. The assessee constructed 10 flats and 3 garages on a certain piece of land and declared the cost of construction at the rate of 138.80 per sq. ft. The Assessing Officer later on issued a notice under section 148 for reopening the assessment. During the course of reopening of assessment, the Assessing Officer made reference to the Valuation Officer to determine the cost of construction, who submitted a report on cost of construction on November 19, 1993. The Assessing Officer on the basis of a subsequent report of the Valuation Officer, made certain additions, which on appeals being filed by the assessee, were upheld by the Commissioner of Income-tax (Appe....
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....rectly shown in the return. Hence, the Assessing Officer was justified in reopening the assessment. The assessee's stand was that the valuation mentioned by him was accepted and was the correct valuation, his account books were accepted and after the sale of flats certain fresh construction was raised by the purchaser such as kitchen flooring, furnishing, kota stones, etc. The built up area which was sold was disclosed and subsequent addition and alteration could not have been attributed to the assessee. It was also the case set up in the original return that the assessee disclosed the necessary facts truly and completely, therefore, reassessment proceedings are bad in law. The assessee had maintained regular books of account, wherein the c....
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....unal has opined that there must be material at the time or prior to the issue of a notice under section 148 of the Income-tax Act, 1961, for reopening of an assessment to indicate that there has been failure or omission on the part of the assessee to disclose fully and/or truly all relevant material facts at the time of assessment. Issuance of notice has to be justified on the reason which exists at the time of issue of notice and subsequent enquiry cannot be adopted to justify the issue of notice. The Tribunal further opined that once the assessee's accounts were accepted without pointing out any defect in the books, the valuation report could be taken into consideration only when the books of account are not reliable or are not supported ....
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....K. Mahatab v. ITO [1978] 111 ITR 900 (Orissa), notice of reassessment issued on the basis of change of opinion was set aside as the material on the basis of which notice was issued was already before the Income-tax Officer at the time of original assessment and the assessment was completed on that material. In the instant case, since the material was placed and was accepted and no defect was found, no further material was available, hence, it cannot be said that there was any reason to believe available to the Assessing Officer to reopen the assessment. Sections 147 and 148 of the Income-tax Act, do not vest uncontrolled and arbitrary power in the Income-tax Officer. Sub-section (2) of section 148 contains built-in safeguard to disclo....