- (1.) THE assessment order under Section 143(3) of the Income -tax Act, 1961, hereinafter referred to as 'the Act', in respect of the assessment year 1989 -90, was originally framed on December 4, 1990. On the basis of the report of the Departmental Valuation Officer in respect of investment made in the construction of building by the respondent -assessee at building material market in Juhi, Kanpur, proceedings under Section 147/148 of the Act was initiated and, vide order dated March 27, 2001, the Assessing Officer added the difference in the valuation made by the Departmental Valuation Officer and the investment shown by the assessee as income from other sources which order was upheld in appeal by the Commissioner of Income -tax (Appeals). However, the Tribunal, vide order dated March 31, 2005, had quashed the reassessment order.
(2.) HEARD Sri R.K. Upadhyaya, learned standing Counsel for the Revenue and Sri Gaurav Mahajan, learned Counsel appearing for respondent -assessee. Relying on the provisions of Section 142A of the Act which was inserted by the Finance (No. 2) Act, 2004, with effect from November 14, 1972, the learned standing Counsel submits that the Tribunal committed an error of law in setting aside the reassessment proceedings. According to him, the Assessing Officer was fully justified in taking recourse to the provisions of under Section 147/148 of the Act on the basis of the report on the Departmental Valuation Officer.
(3.) WE have perused the three orders passed by the authorities filed along with the memo of appeal as also the proviso of Section 142A of the Act which is as under : Provided that nothing contained in this Section shall apply in respect of an assessment made on or before the 30th day of September, 2004, and where such assessment has become final and conclusive on or before that date, except in cases where a reassessment is required to be made in accordance with the provisions of Section 153A.;