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TMI Blog1982 (7) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... e the cost of construction. Issued notice u/s 147(a) to verify cash credits and cost of construction. The assessment order is dt.24th Sep., 1975. It appears that after the assessment was framed, the ITO coming to the view that the assessment u/s 143(1) has resulted an escapement of income, initiated proceedings u/s 147(a). It appears that his reasons to believe as indicated in the order sheet are to the following effect; "The assessee has constructed a Kothi at plot 85-86, Adharsh Colony, opposite bus stand, Ballabhgarh and his investment was Rs. 63,000 in it. He has not shown in the return any construction of the property nor any income in the return. I have reason to believe that Rs. 63,000 has escaped assessment. A notice u/s 148 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the investment in the property. It was further contended that in view of the fact that the assessee had supplied the ITO the date of the completion of the construction and the date of occupation of the property, the latter being July, 1975, there was no income from self occupied property. On the basis of these contentions it was submitted that action u/s 147 was not called for. The departmental representative, on the other hand, submitted that as the assessee did not mention in the original return the particulars of the completion of the property and the income from the self occupied property, the escapement of income had occurred which attracted the provisions of s. 147. The ld. counsel for the assessee in reply submitted that it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation report by the Govt. Valuer on29th March, 1978? (I am not referring to the first valuation report of the Govt. Valuer dt. 23rd September 1976 because the ITO himself has ignored that report). A procedural lapse has been committed by the revenue authorities by not examine the assessee s valuer, a course which have been adapted by the revenue. What has to be decided is whether the second valuation report of the assessee s valuer which is closer of the completion of the construction should be taken note of or the second valuation report of the Govt. Valuer which is three years after completion of the construction. I am of the view that the second report of the assessees valuer is closer to the completion of the construction of the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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