Allowing the petition the Court held that ; the assessment was sought to be reopened solely on the basis of the Valuation Officer’s report. Nothing was on the record that thereafter, any further inquiry was conducted by the Assessing Officer to form an opinion that the income chargeable to tax had escaped assessment with respect to the capital gains. The Valuation Officer had mechanically and on the basis of the rate in the case of two other properties situated in the same town planning scheme determined the fair market value of the land as on April 1, 1981 at Rs.65 per sq. m. However, from the report, it did not appear that the Valuation Officer had applied his mind with respect to the location, etc., of the land in question. Thus there was no tangible material available with the Assessing Officer to form an opinion that income chargeable to tax had escaped assessment. Under the circumstances, on this ground alone, the notice deserved to be quashed. ( AY.2011-12)