TaxTMI 
TaxTMI 
2017 (6) TMI 835
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....tory concern. The construction activity commenced during the financial year 2004-05. While such construction was already going on, the petitioner transferred the entire project to a partnership firm M/s. Hotel Celebration by name on 20.09.2005. As per the books of accounts of the petitioner, as on the said date, the petitioner had incurred expenditure of Rs. 64.11 lacs for the construction. 3. The petitioner's return for the assessment year 2005-06 was taken in scrutiny. The Assessing Officer examined various issues including the cost of construction of the building and passed the order of assessment on 31.12.2008. During this assessment itself the Assessing Officer had made a reference to the Departmental Valuation Officer ['DVO&#....
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....and fully all material facts necessary for his assessment for the above assessment year." Your request to provide the reasons for reopening the assessment are hereby fulfilled now you are requested to provide the details called for as per anexure of notice issued u/s. 142(1) of dated 17/08/2012 within seven days from the date of receipt of this letter." 5. The petitioner raised objections to the notice of reopening under communication dated 05.10.2012. Such objections were rejected by the Assessing Officer by an order dated 17.11.2012 at which stage, this petition came to be filed. 6. Learned counsel Mr. Hemani for the petitioner raised following contentions: i. Impugned notice was issued beyond a period of four years from the end of ....
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....t is stated "to ascertain the cost of investment in the land and building as this is the first assessment year of the assessee hotel." 8. The fact that the assessee transferred the business to the partnership firm on 20.09.2005 is undisputed. In fact, in the reference order calling for the report of the DVO, the Assessing Officer has himself referred to this date when the firm came into existence. Thus, so far as the petitioner is concerned, he had no further relation with the hotel project after 20.09.2005. If the report of DVO is therefore called for cost of construction for the valuation required for the period between 20.09.2005 and 31.03.2006, the Assessing Officer clearly had the investment made by the partnership firm in mind. 9. B....