TaxTMI 
TaxTMI 
1984 (5) TMI 69
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....c. Along with these statements, the assessee also filed her bank accounts. The assessee further indicated the sources of her investment. The ITO accepted the returns of the assessee and completed the assessments for the assessment years 1973-74 and 1974-75 on 3-2-1974 and 9-2-1977, respectively. 3. It appears from the record that the survey squad inspected the building on 11-6-1976 and estimated the value of the building at Rs. 2,60,000 as follows Rs. "1. Main building 2,840 sq. ft. at the rate of Rs. 56 per sq. ft. 1,59,000 1 (a) Extra height of hall 450 sq. ft. at the rate of Rs. 5 per sq. ft. 2,000 2. Add extra for deep foundation  ....
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....ITO reopened the assessments of the assessee for the assessment years 1973-74 and 1974-75 under section 147(a) of the Income-tax Act, 1961 ('the Act'). 4. In the course of reassessment proceedings, the ITO rejected the plea of the assessee that she had disclosed fully and truly all the material facts regarding the cost of her property and as such, the assessments could not be legally reopened under section 147(a). He also rejected the contention of the assessee that the copy of the report of the survey squad was not furnished to her and as such, the reassessment proceedings were invalid. Keeping in view the report of the survey squad, the ITO made the following additions to the income of the assessee for the assessment years 1973-74 and 1974-75 on account of unexplained investments in the property : Nature of item Addition &nb....
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.... --------- -------- 57,090 92,830 --------- -------- 5.1 On appeal, the AAC held for the assessment year 1973-74 that the assessee had fully and truly disclosed all the necessary facts for her assessment and, as such, the ITO could not reopen assessment under section 147(a). He also held that the....
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....ure for the construction of the building, that she had even mentioned the source of her investments and that the ITO passed the orders in the original assessments after applying his mind to the particulars furnished by her. According to him, therefore, the assessee had not omitted or failed to disclose fully and truly all the material facts necessary for her assessment for the assessment years under consideration and so the ITO could not reopen the assessments under section 147(a). In support of his contention, he relied upon the decision of the Ahmedabad Tribunal in the case of Dr. A. Khadia [WT Appeal Nos. 2009, 2010 and 2012 (Ahd.) of 1979] and the decision of the Madhya Pradesh High Court in the case of Jawaharlal Daryavbuxmal v. CIT [1982] 137 ITR 54. On merits, he submitted that the report of the survey squad was without any basis and that even the estimates of the ITO which differed from the report of the survey squad, were not based upon any satisfactory data. He further submitted that the estimates regarding the cost of construction varied from officer to officer, i.e., Rs. 56 per sq. ft. as per the survey squad, Rs. 50 per sq. ft. as per the ITO and Rs. 52 per sq. ft. as ....
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.... of the assessee's income had escaped assessment on account of non-disclosure of material facts by the assessee necessary for his assessment. Again, it is not for the assessee to suggest the inferences that could be drawn from the primary facts, material for his assessments, placed by him before the assessing authority ; his only duty is to place before the concerned authority the material facts necessary for a proper assessment. Now in the present case, as stated above, the assessee did disclose to the ITO that she had constructed a building during the accounting periods relevant to the assessment years 1973-74 and 1974-75. She also disclosed that she had incurred an expenditure amounting to Rs. 40,259 and Rs. 69,898 in the aforesaid assessment years respectively. Then the assessee filed the statements showing the details of payments made by her to various parties on account of purchase of materials like bricks, sand, lime, timber, tiles and wood, etc. In addition, the assessee filed her bank accounts and disclosed the sources of her investments. In such a situation, it cannot be said that the assessee did not fully and truly disclose the material facts necessary for her assessmen....