9911796707
TMI Blog1979 (11) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... look; it is situated in the flood affected area; around the house of the assessee no other house has been built up and the house of the assessee no other house has been built up and the house of the assessee looks like a farm house. The colony is yet to be taken over by the Corporation and that no civic amenities have yet been provided to the residents of the locality concerned. Considering these facts, the ITO accepted the ALV as declared by the assessee. Thereafter, the ITO initiated proceedings under s. 147 of the IT Act, 1961 and served a notice under s. 148 for the years under appeal. Common reasons to initiate the proceedings under s. 147 were recorded by the ITO for both the years under appeal. In the reasons that were recorded on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ully gone through the reasons having been recorded by the ITO on 20th April, 1976. The material portion is contained in para 2 reproduced above. The argument of Shri Kapoor, the learned counsel for the assessee, is that all material facts had been disclosed by the assessee at the stage of the assessment and therefore, there was omission on failure on the part of the assessee within the meaning of s. 147(a) of the Act, 1961. Shri Kapoor, therefore, argues that proceedings could not be validly initiated under s. 147(a) of the Act, 1961. Under s. 147(a) proceedings can be initiated if the ITO has reason to believe that by reasons of the omission or failure on the part of the assessee to make a return or to disclose fully and truly all material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re initiated by the ITO only under s. 147 cl. (b). We are hearing the appeal against the order of the AAC who has clearly observed that the ITO initiated action against the assessee under s. 147(a). So the first question for consideration is whether the re-assessment proceedings could be legally initiated by the ITO under that provision. The Revenue's representative himself does not support the action of the ITO under s. 147(a). The other question for consideration is whether the ITO initiated re-assessment proceedings under s. 147(b) and the AAC wrongly observed that action was taken by the ITO under s. 147(a). In this connection para 2 of the reasons that were recorded by the ITO on 20th April, 1976 is material and we reproduce it once ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion of Corporation New Delhi is not "information" within the meaning of s. 147(b) according to Shri Kapoor. We think there is no need for us to go into the controversy whether the ALV estimated by Corporation, New Delhi constitutes "information" within the meaning of s. 147(b). The main question for consideration is whether from the reasons being recorded by the ITO on 20th April, 1976, can it be concluded that the action was taken by the ITO only under cl. (b) of s. 147. From the second paragraph of the reasons, as above reproduced, it is amply clear that the ITO bore in his mind the provisions of s. 147(a). That being so, we are of the view that the AAC rightly observed that the action was taken by the ITO under s. 147(a). Assuming b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITO clearly made observations which are relevant only to cl. (a) of s. 147. In these circumstances the order of the ITO cannot be upheld saying that all ingredients of cl. (b) of s. 147 are fulfilled. Whereas we agree with the AAC that action was taken by the ITO under cl. (a) of s. 147, we do not agree with her that action under s. 147(a) was validly taken by the ITO. 5. For the reasons, we hold that the action of the ITO cannot be justified under cl. (a) of s. 147. No reasons have been given by the AAC to justify the action of the ITO under that provision. The re-assessment proceedings are, therefore, null and void. The assessee having succeeded on the legal objection, we do not enter into the merits of the valuation of the property. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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