2009 (7) TMI 10 - HC - Income Tax

Re-assessment - proceeding under section 148 of the Act was initiated and on the basis of report of District Valuation Officer investment in the property was added Held that District Valuation Officer cannot be made the basis for initiating reassessment proceeding Decision of Supreme Court in the matter of Amiya Bala Paul followed.

Summary

In the High Court judgment of ALLAHABAD HIGH COURT 2009 (7) TMI 10, the Commissioner of Income Tax filed an appeal under section 260-A of the Income Tax Act, 1961 for the assessment year 1992-93. The questions raised were regarding the dismissal of the department's appeal by the Income Tax Appellate Tribunal, the utilization of the Valuation officer's report as evidence, and the issue of unexplained investment in the property. The Tribunal set aside the reassessment order based on the report of the District Valuation Officer. The court found no illegality in the Tribunal's decision, citing the finality of the assessment under section 143(1)(a) of the Act. The judgment concluded that the case did not raise substantial questions of law, and the appeal was dismissed on its merits. The court referenced a similar view taken in a previous case Commissioner of Income Tax Vs. M/s Leather Trends (P) Limited.