9911796707
TMI Blog2017 (4) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under section 148 of the Act the same is to be treated as valid and final. The objections raised by the assessee pertain to the sufficiency of reasons for issuance of notice under section 148. The same cannot be gone into at the stage of reassessment. The judgment relied upon by the assessee is not applicable in the present case in view of the failure of the assessee to challenge the validity of the notice under section 148 - Decided against assessee Correctness of the valuation report - AR contends that the revenue was not justified to accept the value mentioned in the sale deeds relied upon by the Valuation Officer and rejecting the comparable cases given by the assessee - Held that:- The valuation report the said objections raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value determined by the Valuation Officer. The AO dismissed those objections and made an addition of ₹ 48,21,216/- on account of understated capital gain in the hands of the assessee by order dated 10.03.2014. 4. Aggrieved by the assessment order dated 10.03.2014, the assessee filed appeal before CIT(A) and vide impugned order dated 18.03.2015, the appeal of the assessee was dismissed. 5. The assessee is in appeal before us and has raised the following grounds of appeal: 1. That the assessment order as well as CIT Appellate order is against the law and facts of the case. 2. That the LD. ITO was not justified to initiate the proceedings under Sec 148 when I have filed all required documents in the original proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he required documents were submitted during the original proceedings and the material obtained subsequent to the assessment order cannot be used to reopen an assessment. The Ld. DR on the other hand relied upon the order passed by the AO and the CIT(A). 7. I have heard the rival submissions and perused the record and judgments. The notice under section 148 was issued to the assessee on 09~04.2012. The said notice was objected by the assessee vide letter dated 07.02.2014 stating as under:- Subject: Challenging of issue of notice u/s.148 of Income Tax Act, 1961 for the Assessment Year 2008-09. That your predecessor referred that matter to district valuation officer for determination of market value of property i.e. bearing no. Plot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Industries Ltd. Vs. DCIT and ors (1995) 238 ITR 57 (del) (vi) M/s. Tara Chand Moudra vs. UOI and ors (2000) ITR 187 (Raj.) 8. It can be seen from the objections raised by the assessee during the reassessment proceedings that there was no challenge to the validity of the notice with respect to the grounds raised in the present appeal i.e. (i) reopening on the basis of valuation report (ii) material obtained subsequent to assessment order for issuance of notice under section 148. There were no objections taken by the assessee in the reassessment proceedings on aforesaid grounds. It is settled law that if the assessee chooses not to challenge the notice issued under section 148 of the Act the same is to be treated as valid and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the final outcome of the proceedings is not relevant and at the initial stage, what is required is reason-to believe but not established fact of escapement of income. It further held that at the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief whether the material would conclusively prove the escapement is not the concern at this stage. 21. This would clearly mean that the issuance of notice is justifiable. If the assessee chooses not to challenge the notice or if it is challenged and found to be valid, then in either case, such notice is to be treated as valid and final. Since the validity of the notice issued under section 148(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds relied upon by the Valuation Officer and rejecting the comparable cases given by the assessee. 12. I have heard the submissions and perused the valuation report. The objections raised by the assessee during the course of assessment are as under:- That the valuation has taken the comparable case of property was located at Prashant Vihar, Outer Ring Road, New Delhi and my objection over this is as under: (i) That the property in question was located at Sector-7, Rohini which was lying about 2 K.M. from Outer Ring Road. Therefore, the comparison of property cannot be made on this basis. (ii) That property lying at outer Ring Road is to be used commercial due to location and property in question is purely residential and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
