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2017 (6) TMI 835 - HC - Income TaxReopening of assessment - determine the value of property - investment made by the partnership firm - DVO report relied upon - Held that:- 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. It is surprising that despite clear terms of the reference to the DVO calling for his estimate of cost of construction during the period of 20.09.2005 to 31.03.2006, the DVO appears to have given his estimate of cost of construction during the period between 01.04.2004 and 01.07.2005 and estimated such cost at ₹ 1.82 crores. If the reference of the DVO was for a specific period, he could not have given the report for the period completely unrelated to the reference period. On what basis the DVO was prompted to give such report for a period anterior to one for which his opinion was called for, we are not sure. In our opinion, therefore, a report of the DVO itself was invalid since it travelled beyond the reference period - Decided in favour of assessee.
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