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Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Assessment year 1999-2000 - Where Tribunal left it open to Assessing Officer to verify investments made by assessee and to examine investments as per law, reopening of assessment by Assessing Officer on basis of observations made by Tribunal in its order could not be said to be without justification [In favour of revenue] The original assessment order in the assessee's case under section 143(3) was passed which included certain amount as unexplained investment in construction of house property. This order was upheld by the Commissioner (Appeals). When the further appeal was filed before the Tribunal, the Tribunal allowed the appeal and deleted the addition observing that the assessee may produce the evidence/material regarding investment in property. Further, observations were made that the Assessing Officer was free to verify these investments in the year in which they were made and to examine the investments as per law. The Assessing Officer, thereafter, issued notice to the assessee under section 148 and reopened assessment. The assessee contended that issuance of notice under section 148 was without justification. Held that notice under section 148 for reopening of the assessment was issued to the assessee on the basis of observations made by the Tribunal in its order where the Tribunal left it open to the Assessing Officer to verify investments made by the assessee and to examine the investments as per law. This observation was made accepting the argument of the assessee that the investments made in the construction of house property could not be added to the income of the assessee for the assessment year 2002-03. The further argument of the assessee was that the municipal authorities and the DVO in then reports had mentioned that the construction had commenced in the year ending 31-3-1999 and the period of construction were financial years 1997-98, 1998-99 and 1999-2000. Accepting this plea of the assessee, the Tribunal in that order observed that the investment in the property appeared to have been completed prior to the year 31-3-2002. It was in that context that the…

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