TaxTMI 
TaxTMI 
1983 (2) TMI 23
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....ntentions raised, these petitions can be disposed of through a common order and for that purpose, only the facts stated in C.W.P. No. 2279 need be adverted to. Further, the facts are not even in dispute. During the years noted above, the assessee had constructed a building on Railway Road, Ambala Cantt. The total cost of construction disclosed as per the valuation report was Rs. 1,54,400 though according to her accounts relating to the construction, the actual cost of construction was Rs. 1,43,077. The ITO accepted the valuation report as the actual cost of construction and treating Rs. 11,312 (the difference in the above-noted two amounts) as the undisclosed income of the assessee, distributed that as income of the two assessment years ....
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....itary submission of Mr. D. K. Gupta, learned counsel for the petitioner, is that in the given facts and circumstances of this case, which, as already indicated, are not in dispute, the ITO neither had any justification nor jurisdiction to reopen the assessment proceedings on the ground that the petitioner had not fully and truly disclosed the material facts necessary for purposes of the assessment. According to the learned counsel, the ITO was not possessed of any material to show nor has any been disclosed that the facts submitted by the petitioner at the time of the assessment of her income pertaining to the above-noted two years were not in any way true. Admittedly, it is only on the basis of the subsequent valuation report obtained by t....
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....r '. It postulates a duty on every assessee to disclose fully and truly all material facts necessary for his assessment. What facts are material and necessary for assessment will differ from case to case. In every assessment proceeding, the assessing authority will, for the purpose of computing or determining the proper tax due from an assessee, require to know all the facts which help him in coming to the correct conclusion. From the primary facts in his possession, whether on disclosure by the assessee, or discovered by him on the basis of the facts disclosed, or otherwise, the assessing authority has to draw inferences as regards certain other facts ; and ultimately, from the primary facts and the further facts inferred from them, the au....
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....22, was equivalent to s. 147(a) of the Act. To the same effect are the observations made in the other two judgments noted above. On behalf of the respondents, Mr. Ashok Bhan, however, contends that certain observations by a Division Bench of this court in CIT v. Smt. Bimla Vati [1980] 124 ITR 891, impliedly support the stand of the Department to the effect that if the ITO comes in possession of a valuation report relating to the cost of construction, of a particular building, subsequent to the finalisation of the assessment of a particular assessee, that by itself can be enough information to reopen the case of the assessee u/s. 147(a) of the Act. 1, however, see no weight in this submission for the short reason that as per this judgment it....