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TMI Blog2006 (9) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... n 147. Since there is nothing on record to show that the provision of sub-section (2) of section 148 has been complied with, the taxing authorities were not eligible to reopen the assessment under section 147. - - - - - Dated:- 20-9-2006 - Judge(s) : D. BISWAS., SMT. A. HAZARIKA. JUDGMENT The judgment of the court was delivered by D. BISWAS J.-This reference arises out of the order dated October 27, 1994, passed in I. T. A. Nos. 446, 447, 448 and 449 (Gau) of 1992 passed by the Income-tax Tribunal, Guwahati Bench at Guwahati. The Tribunal, on application by the assessee under section 256(1) of the Income-tax Act, 1961, referred the following questions before this court: "1. Whether, on the facts and in the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1987-88. Returns were, filed in response to the notices showing losses. The assessee submitted its objection against the valuation report claiming that regular books of account, profit and loss accounts and the balance sheets were maintained for the relevant assessment years. The Assessment Officer not being satisfied with the explanation added the differential value in the respective assessment years under reference to the total income of the assessee under section 69 of the Act. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals) challenging the valuation report on the ground that the books of account were maintained properly and the same were not rejected by the Assessing Officer and, therefore, there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the Commissioner of Income-tax (Appeals). The Tribunal refused to interfere as it found that the cost of construction as assessed by the Valuation Officer is reasonable. We have heard Mr. N. Choudhury, learned counsel for the assessee, and Mr. U. Bhuyan, learned counsel for the Revenue. Mr. Choudhury, learned counsel for the assessee, argued that the books of account are maintained properly in regular course of business and the same reflect the actual spending by the assessee. The cost of materials and labour charges in a sleepy town like Dhubri is on the lower side and, therefore, the report of the Valuation Officer based on fixed formulae cannot reflect the actual expenses incurred. It has been further argued that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard taken by the authority below is a decision on the facts. But, this decision must be in due exercise of the powers vested with the Assessing Officer. The function of a valuer of a property is a technical function requiring expert investigation for the purpose of estimating the cost of construction. There is no doubt that a report of a valuer estimating the cost of construction would only be an opinion of the expert on a technical matter. The assessing authority may in an appropriate case seek expert opinion about the cost of construction. The provisions of section 142(2) show that the Assessment Officer is authorised to make such an enquiry as may be necessary for the purpose of obtaining opinion in respect of income or loss of an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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