9911796707
TMI Blog1998 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,75,000. Prior to the completion of the assessment for the year 1985-86 and passing of the assessment order annexure 3, respondent No. 3 had made a reference to the Valuation Officer of the Income-tax Office, vide his letter dated April 20, 1987, to assess the value of the house. A letter of reference has been produced as annexure 4. Before this valuation report could come to respondent No. 3, as desired by him vide letter annexure 4, he proceeded with the assessment and on August 7, 1987, he completed the assessment. Subsequently, respondent No. 3 issued a notice under section 148 of the Income-tax Act, 1961 (referred to hereinafter as "the Act"), alleging that he proposes to reopen the assessment for the assessment year 1985-86. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reading of the reply filed on behalf of the respondents it appears that the only information in possession of respondents No. 3 appears to be the valuation report submitted by the Depart mental Valuation Officer. Counsel for the petitioner has urged that the notice under section 148 of the Act has been issued purportedly acting under section 147(b) of the Act. This means that the assessing authority as a consequence of the information in his possession has reason to believe that the income chargeable to tax has escaped assessment. As per the return filed by the respondents, the only information available with the assessing authority respondent No. 3 was the valuation report submitted by the official Valuation Officer of the Department. Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , though the assessment could be made up to March 31, 1988. The departmental authorities felt satisfied that the information sought by them from the official Valuation Officer is of no consequence and, therefore, the assessing authority had passed the assessment order as otherwise the assessment order could have been further delayed. Thus, the valuation report was not such a piece of document which can be said to have the nature so as to acquaint, enlighten or instruct the mind of the assessing authority for the first time regarding the dispute in relation to the valuation of the property. Learned counsel for the petitioner has further urged that the conclusions of the assessing authority are based on change of opinion because the Valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation and cannot form the basis for reopening an assessment under section 147(b) of the Act and has, thus, contended that the only basis for the reopening being a report of the Departmental Valuer which cannot be made the basis of reopening the assessment made by the assessment order annexure 3 is, therefore, without there being any foundation and so also the notice issued under section 148 of the Act which is not maintainable. A notice without foundation can be quashed by this court in exercise of its jurisdiction under article 226 of the Constitution of India. The petitioner has, thus, contended that when the only basis for the re-opening was the report of the Valuation Officer of the Department, which could not be made the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na [1994] 206 ITR 715, it has been conclusively held by this court that the report of a valuer cannot singly be made the basis of information as required under section 147(b) of the Act to issue a notice under section 148 of the Act. No separate reasons have been furnished by the Department. The only reason discernible from the reply filed by the Department is that subsequent to the filing of the return by the assessee, the Department came into possession of. the report of the official valuer of the Department and, thus, came to issue the notice under section 148 of the Act. As the only ground available with the Department for issuing notice under section 148 of the Act was held bad by this court, it can safely be held that the notice issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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