TaxTMI 
TaxTMI 
1981 (9) TMI 168
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....ve determine this issue are as under. This assessee, Suraj Theatre, Sirsa, is a registered firm. Its business is that of film exhibitor. The previous year relevant to the assessment year under appeal was financial year ending on 31st March, 1974. During the previous year, the assessee constructed a cinema building for which the opening ceremony was performed on 23rd October, 1973. During the course of original assessment proceedings, the ITO, on scrutiny of the return of income and the accompanying papers, came to the prima facie conclusion that the cost of construction disclosed by the assessee in respect of the cinema building was "apparently low keeping in view the high rates of building material during the financial years 1972-73 and 19....
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..... This assessment was framed under section 143 (3) in the status of a registered firm on 31st March, 1976. 4. After the original assessment was completed the Valuation Officer of the Income-tax Department sent the valuation report estimating the probable cost of construction of Rs. 8,91,000. The ITO got this report and initiated proceedings under section 147(b) which culminated in the impugned re-assessment dated 22nd September, 1979. In this assessment, the ITO, inter alia, added an amount of Rs. 1,94,930 taking the cost of construction as shown in the District Valuation Officer's report. Being aggrieved with this assessment, the assessee moved the Commissioner (Appeals), being the first appellate authority in this case. 5. The learned C....
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....ort of the Valuation Officer given under Wealth-tax Act would have a vital bearing on the question of the determination of A.L.V. of the properties and since it was received subsequent to the assessment order, it would constitute 'information' within the meaning of section147(b) of Income-tax Act, 1961. IT would be noticed that at the time of original assessment, the question of market value of the properties was not gone into. In the instant case, the ITO who framed the original assessment, not only applied his mind on the issue of adequacy of the cost of construction at Rs. 6,39,245 as against Rs. 6,29,138 disclosed by the assessee. Besides, in this case, the reference to the Valuation Officer was made under theWealth-taxAct and not under....