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TMI Blog1984 (4) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment made therein. For the asst. yr. 1973-74, the assessee filed return disclosing property income from self-occupied property. The original assessments for the asst. yrs. 1972-73 and 1973-74 were completed on 7th Sept., 1974 and 18th March, 1976. Property income form self-occupied property was shown for the period from May, 1972 when the house was completed upto Diwali, 1972 when the asst. yr. yr. 1973-74 ended at Rs. 600, which was accepted by the ITO as such. The ITO in the original order dt. 18th March, 1976 relating to the asst. yr. 1972-73 stated the facts as under: "the construction of property was stared in July 1971 and it was completed in May 1972. It has a fine marble fittings with tiles and bathrooms. Cost of construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ength. The contention of Shri Saxena is that the assessee omitted or failed to furnish material particulars necessary for making assessments for both the years in that the factum of construction was not disclosed in the return filed for the asst. yr. 1972-73 and investment made in the construction was not disclosed. He urges that for the asst. yr. 1973-74, the assessee was called upon to file report of the valuer, but he failed in doing so and, therefore, the assessee failed to disclose material particulars necessary for making the assessment for that year also. Shri Ranka argues that so far as the asst. yr. 1973-74 is concerned, the assessee already disclosed the property income form the self-occupied property, which was completed in May, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for which the columns are specified in the return form. What Shri Saxena argues that may be correct, but the Hon'ble Andhara Pradesh High Court does not rule down in the afore mentioned authority that factum of construction and investment made in the incomplete or complete property constitute material facts necessary for making the assessment within the meaning of s. 147(a). On the facts and in the circumstances of the case, when from the investment made in the construction no income accrued, we are of the view that the law does not enjoin upon the assessee to disclose the factum of construction, and investment made in the incomplete construction in the return. Shri Saxena argues that had the assessee disclosed these facts then the ITO wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order. Merely because other report of the valuer was not filed by the assessee, it cannot be said that the assessee omitted or failed to disclose material facts. Once the assessee disclosed material facts, for example the construction was started in the last preceding year, that was completed in that asst. yr. 1973-74 income from self-occupied property, which was completed in 1973-74, was disclosed and the investment made in constructions was also disclosed, the Revenue cannot agree that it was necessary for the assessee to file a report of the valuer. Report of the valuer can constitute an evidence but it cannot constitute a material fact necessary for making the assessment. For want of evidence the ITO may reject the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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