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January 2011

Reassessment — Opinion of DVO alone cannot be the basis for reopening the assessment.

By Kishor Karia | Chartered Accountant
Atul Jasani | Advocate
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New Page 2

 15. Reassessment — Opinion
of DVO alone cannot be the basis for reopening the assessment.


[ACIT v. Dhariya
Construction Co., (2010) 328 ITR 515 (SC)]

The Supreme Court noted that
the Department had sought to reopen the assessment based on the opinion given by
the District Valuation Officer (DVO). The Supreme Court held that the opinion of
the DVO per se is not an information for the purpose of reopening assessment
u/s.147. The Assessing Officer has to apply his mind to the information, if any,
collected and form a belief thereon. The Supreme Court dismissed the appeal of
the Department holding that it was not entitled to reopen the assessment.

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