RAJHANS BUILDERS Vs. DY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) PETITIONER has challenged notice dated 1.8.2007 as at Annexure B to the petition issued by respondent No.1, Deputy Commissioner of Income Tax, under section 153C of the Income Tax Act,1961 ('the Act' for short). The petitioner has also challenged the reference made by the Assessing Officer on 31.7.07 to respondent No.2 the District Valuation Officer to opine on the valuation of certain immovable properties of the petitioner to ascertain the investment made by the petitioner in such properties.

(2.) THE petitioner is a firm engaged in the business of civil construction. The petitioner regularly files its return. Search operations were carried out by the Income Tax Department on 7.3.2006 in cases of Rajhans group of companies. Statement of one Shri Shivlal Jain, Managing Partner of M/s.Rajhans Builders was recorded under section 132(4) of the Act. In such statement, he admitted having earned unaccounted income of Rs.6 crores by the said group. Later on during the search of his locker, he revised the undisclosed income of the group to Rs.8.25 crores. On the basis of the materials collected and the documents found, respondent No.1 issued the impugned notice under section 153C of the Act in which it was stated as under:

(3.) AT our request, learned counsel for the Revenue had made available the satisfaction note recorded by respondent No.1 for issuing the impugned notice in which it is stated as under: