HOTEL AMAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE valuation report, valuing the property of the petitioner, made by the Valuation Officer on a reference being made by the Income-tax Officer under Section 55A of the Income-tax Act, 1961, annexed as annexure-3 to the writ application is being challenged by the petitioner, inter alia, on the ground that the provisions of Section 55A of the Income-tax Act, 1961, can have no application to any enquiry under the Income-tax Act, 1961, to find out the investment made by the assessee in the construction of a building.

(2.) THE petitioner is a registered firm and had constructed a hotel called "Hotel Amar". THE construction of the hotel building started in the year 1981 and was completed in the year 1983. THE investment made by the petitioner in different assessment years in constructing the hotel building was indicated by the petitioner and, ultimately, an assessment was made by the Income-tax Officer under Section 143(1) of the Income-tax Act and the investment made was accepted by the Income-tax Officer. THE assessee had also furnished the valuation of the house made by a registered valuer. In 1987, in the course of taking up the assessment proceeding of the petitioner, the Income-tax Officer being of the opinion that the valuation of the house submitted by the petitioner was incorrect made a reference to the Valuation Officer, invoking his jurisdiction under Section 55A of the Income-tax Act, 1961, and, on receipt of the report from the said Valuation Officer and finding out a huge difference between the figures submitted by the petitioner with regard to the valuation of the hotel building and the figures arrived at by the said Valuation Officer with regard to the valuation of the said hotel building, the Income-tax Officer issued a notice under Section 148 of the Income-tax Act reopening the assessment proceeding under Section 147(a) of the said Act. At that stage, the petitioner had approached this court and had obtained an order staying the assessment proceeding which was sought to be reopened in exercise of his power under Section 147(a) of the Income-tax Act.