Law:

Section:

Section 142A of the Income-tax Act, 1961 - Estimate by Valuation Officer in certain cases - Assessment year 1993-94 - Whether by virtue of proviso to section 142A(3), provision of section 142A has been made inapplicable in respect of an assessment made on or before 30-9-2004 where such assessment had become final - Held, yes FACTS The assessment of the assessee for the assessment year 1993-94 was completed by the Assessing Officer under section 143(1)(a) on 31-3-1995. During the course of assessment proceedings for the assessment year 1994-95, the Assessing Officer noted that the assessee had constructed a building in the financial years 1992-93 and 1993-94 relevant to the assessment years 1993-94 and 1994-95 at a cost of Rs. 9,65,250. The Assessing Officer, being not convinced by the value projected by the assessee, referred the matter to the Valuation Officer for determining the cost of construction. The latter valued the cost of the building at Rs. 12,53,900. The Assessing Officer determined the difference in the cost of construction at Rs. 2,39,243 and observed that 69.38 per cent construction was made in the financial year 1992-93 and the balance was constructed in the financial year 1993-94. Accordingly, he determined the amount of difference in the cost of construction for the assessment year 1993-94 and initiated proceedings under section 147 and re-assessed the income of the assessee for the assessment year 1993-94 by making an addition of Rs. 1,65,984. On appeal, the Commissioner (Appeals) deleted the addition. On further appeal, the Tribunal upheld the deletion. On appeal : HELD A reading of the provision of section 142A shows that while the estimate of value of the property, etc., made by the Valuation Officer has been treated as relevant for the purpose of making assessment, by virtue of the proviso appearing below sub-section (3), the same has been made inapplicable in respect of an assessment made on or before 30-9-2004, where such assessment had become final and conclusive except where reassessment is required to be made under section 153A. [Para 7] In the instant case, the assessment had become final on 31-3-1995. It was not the revenue's case…

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