Assessee-company is\u00a0 engaged in business of real estate development and running of hotels.\u00a0 During original assessment proceedings, assessment was framed at a total income as against declared income of assessee.\u00a0 Subsequently, Assessing Officer received a valuation cell report from District Valuation Officer (DVO) with respect to cost of property.\u00a0 After perusal of valuation report, it was found that DVO had estimated investment which were made by assessee in renovation\/ reconstruction of property, furthermore report also mentioned, that assessee had declared total investment as nil.Assessing Officer issued reopening notice on ground that income had escaped assessment. On writ the Court held that\u00a0\u00a0 sole ground for reopening was valuation report, even though, assessee had declared cost of said property under head Fixed Assets and Capital WIP. Also there was no statement or discussion by Assessing Officer as to what was basis and why he should rely on valuation report. Since reasons for reopening of assessment did not reflect that Assessing Officer had applied his mind to ascertain as to whether in fact assessee had already declared value of aforesaid property under Fixed Assets and Capital WIP or whether such valuation is\u00a0 correct or not. Reassessment notice and order disposing the objection is quashed. (AY. 2010-11, 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Amounts of investments not fully disclosed in books of account-Report from District Valuation Officer (DVO)-Fixed asset and Capital WIP-Failure to apply mind-Reassessment notice and order disposing the objection is quashed.[S. 48, 69A, 148, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49344","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cPS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=49344"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49344\/revisions"}],"predecessor-version":[{"id":56430,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49344\/revisions\/56430"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}