Reopening on the basis of DVO report in not permissible(Supreme Court)

[brett_lee38]

Here comes the most awaited decision of the apex court wherein it has been held that reopening of the assessment on the basis of DVO report is not permissible. Earlier so many high Courts were in favour of assessee but the Delhi High Court in the case of Bawa Abhi Singh has held against the assessee. But now Supreme Court has settled that the reopening of assessment on the basis of DVO report in not permissible.

IN THE SUPREME COURT OF INDIA


CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.9468 OF 2003


Assistant Commissioner of Income Tax,
Gujarat ...Appellant(s)

Versus

M/s. Dhariya Construction Company ...Respondent(s)

O R D E R

Having examined the record, we find that in this
case, the Department sought reopening of the assessment
based on the opinion given by the District Valuation
Officer (DVO). Opinion of the DVO per se is not an
information for the purposes of reopening assessment under
Section 147 of the Income Tax Act, 1961. The AO has to
apply his mind to the information, if any, collected and
must form a belief thereon. In the circumstances, there
is no merit in the Civil Appeal. The Department was not
entitled to reopen the assessment.
Civil appeal is, accordingly, dismissed. No order
as to costs.

..................J.
(S.H. KAPADIA)


..................J.
(AFTAB ALAM)
New Delhi,
February 16, 2010.