9911796707
TMI Blog2009 (11) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... n the original assessment. 2. We have heard the senior standing counsel appearing for the appellant and Sri Harishankar V. Menon appearing for the respondent. 3. The assessments involved are for the years 1996-97, 1998-99, 1999-2000 and 2000-2001. In the course of the relevant four previous assessment years, the assessee was engaged in the construction of a hospital building. While completing the original assessment, the Assessing Officer accepted the accounts pertaining to investments in the construction of the building. However, after completion of original assessment, based on the returns filed, the Assessing Officer referred the building for valuation by the approved valuer. When the valuation report came, the difference in cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined the fact by legal evidence or conclusion. What is required is 'reason to believe' but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reason-able person could have formed the requisite belief. Whether material would conclusively prove escapement of income is not the concern at that stage. This is so because the formation of the belief is within the realm of the subjective satisfaction of the Assessing Officer." 5. Based on the above finding the senior counsel contended that valuation report constitutes the basis for reopening because the Assessing Officer has examined the valuation report and he was satisfied that the assessee had ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valued by the approved valuer is over and above the cost declared by the assessee, the same constitutes the basis for reopening. Of course, when the variation is insignificant, there will be no justification for reopening the assessment. However, in this case, variation is substantial and the difference is above Rs. 12 lakhs. We are therefore of the view that the subsequent information received about the higher investment made in the construction of the building by the assessee over the amount accounted by him constituted the basis for reassessment. When the officer has reason to believe that income has escaped from assessment for all the years the Assessing Officer gets the right to reopen assessments. Therefore we are of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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