INCOME TAX ACT, 1961

--Reassessment--Reason to believeBasis for reopening--The assessment was completed under section 143(3) originally. Thereafter AO noted that there was a difference in the cost declared by assessee and estimated by DVO. By recording these reasons, AO issued notice under section 148 and thereafter reassessment was completed. Assessee argued that proceedings under section 148 initiated on the basis of valuation report was bad in law and bad on facts. Held: The assessment could not be reopened as mere DVO's report could constitute reason to believe that any income had escaped assessment for the purpose of initiating proceedings under section 147/148.

Income Tax Act, 1961, Section 148

IN THE ITAT, JODHPUR BENCH

R.K. GUPTA & SANJAY ARORA, JJ.

Bhagwan Chand Kawad v. ITO

ITA No. 501/Jodh/2009

A.Y. 2004-05

23 March, 2012

Income Tax Act, 1961, S. 148

Decision: In assessees favour.

Assesseeby : Amit Kothari,

Departmentby : R.H. Gohel,