Law:

Section:

SECTION 147(a), READ WITH SECTION 69, OF THE INCOME-TAX ACT, 1961 - REASSESSMENT - NON- DISCLOSURE OF PRIMARY FACTS - ASSESSEE'S PREVIOUS YEAR FOR ASSESSMENT YEAR 1974-75 WAS FROM 7-11-1972 TO 26-10-1973 - CONSTRUCTION OF BUILDING IN WHICH ASSESSES HAD ONE-FIFTH SHARE WAS COMPLETED IN DECEMBER 1972 - FOR ASSESSMENT YEAR 1974-75, ASSESSEE SHOWED COST OF CONSTRUCTION OF SAID PROPERTY AT CERTAIN AMOUNT ON BASIS OF VALUAFION REPORT - ITO, HOWEVER, TOOK COST OF CONSTRUCTION AT INCREASED AMOUNT AND, THUS, PROPORTIONATE AMOUNT OF DIFFERENCE WAS ADDED TO ASSESSEE'S INCOME AS INCOME FROM UNDISCLOSED SOURCES-TRIBUNAL HELD THAT AS CONSTRUCTION WAS COMPLETED IN DECEMBER 1972, WHICH WAS PRIOR TO FINANCIAL YEAR 1973-74 RELEVANT TO AFORESAID ASSESSMENT YEAR, IMPUGNED INCLUSION IN ASSESSEE'S INCOME COULD NOT BE DONE IN ASSESSMENT YEAR UNDER CONSIDERATION - ITO, THEREFORE, SOUGHT TO REOPEN ASSESSMENT UNDER SECTION 147(a) FOR ASSESSMENT YEAR 1973-74 - WHETHER ITO WAS JUSTIFIED IN REOPENING AFORESAID ASSESSMENT UNDER SECTION 147(a ), IN VIEW OF FACTS THAT ASSESSEE HAD NOT ONLY DISCLOSED PERIOD OF CONSTRUCTION BUT ALSO COST OF CONSTRUCTION OF ENTIRE BUILDING, AND IT WAS ONLY ON ACCOUNT OF ADDITION MADE BY ITO THAT ASSESSEE'S INCOME WAS INCREASED - HELD, ON FACTS, NO Facts The assessee followed the Samvat year and his previous year for the assessment year 1974-75 was from 7-11-1972 to 26-10-1973. The construction of a house property in which the assessee was a co-owner having one-fifth share, was completed in December 1972. On the basis of a valuation report, the assessee showed the cost of construction of the said building in its return for the assessment year 1974-75. The ITO, however, enhanced the said cost by 30 per cent of the total cost as shown by the assessee and accordingly, proportionate amount was added to the assessee's income as income from undisclosed sources. On appeal, the Tribunal, however, observed that as the construction of the building was completed in December 1972, which was prior to the commencement of the financial year 1973-74, the inclusion of the impugned amount in the assessee's total income for the assessment year 1974-75 was not justified, since it…

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