TaxTMI 
TaxTMI 
2010 (4) TMI 831
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...., framed under section 144 read with section 147 of the Act for the assessment year 2005-06. 3. Upon issuance of notice, the respondent put in appearance and has tendered affidavit-in-reply dated March 29, 2010. On April 5, 2010, when the matter came up for hearing, the following order came to be made by the court : "In the light of the ratio of the judgment reported in [2008] 307 ITR 115 (Guj) in the case of Hynoup Food and Oil Industries Ltd. v. Asst. CIT. Learned counsel appearing for the respondent authority is directed to produce the original record to establish that the successor Assessing Officer had made a noting in relation to the reasons recorded prior to issuance of notice under sectio....
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....ere recorded on March 27, 2009, for reopening the assessment for the year under consideration, namely, the assessment year 2005-06. Learned advocate has referred to the reassessment order dated December 21, 2009, to emphasize that the concept of mutuality was not applicable as recorded in the communication dated November 27, 2009, as well as the findings recorded in paragraph 4 of the assessment order dated December 21, 2009, wherein the relevant extracts from the assessment order of the assessment year 2006-07 have been reproduced. 7. It is an accepted position that the Assessing Officer, while framing the original assessment, issued notice under section 142(1) of the Act. On February 20, 2007, various submissions were made by th....
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....balance-sheet. The expense incurred on the project was, shown work-in-progress (WIP), in the balance-sheet. At the end of March 31, 2005, the construction work-in-progress (WIP) was Rs.4,12,09,737. The assessee had collected advance to the tune of Rs.1,20,56,460 from customers against the price fixed for the units to be sold and, thus, the proportionate income accrued could be estimated. Thus, profit percentage of completion of the project is estimated in respect of which the W.I.P. ; at 10 per cent. of the W.I.P. of Rs. 4,12,09,737. The underassessment of income was to the tune of Rs. 41,20,974 (10 per cent. of Rs. 4,12,09,737). (3) In view of the above, I have reason to believe that income of the assessee to the extent of Rs. 41....
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....res to them to part with ownership of land and building. We are not preparing any profit and loss account for our company in the period of construction as all the expenditure are debited to work-in-progress and transfer at the completion of work to land and building account on one side and members contribution to reserve and surplus account under building fund. We are enclosing here-with details of dwelling and shop units proposed floor-wise along with total size of floor and constructed areas for your kind perusal. Annexure 1." 11. Thus, it is apparent that, on the same set of facts and material available on record, the successor Assessing Officer has come to form a different opinion and recorded reasons thereupon without establi....