2003 (4) TMI 32 - HC - Income Tax

High Court directs Tribunal to refer questions on Valuation Officer's opinion under Income-tax Act.

The High Court of Rajasthan directed the Tribunal to refer questions regarding the necessity of material for a Valuation Officer's opinion under section ... Necessity of material or evidence before referring a matter to the Valuation Officer for opinion - reference to the Valuation Officer for valuation under section 133(6) of the Income-tax Act - sufficiency of the Valuation Officer's report as material for the Assessing Officer to determine cost of construction - referral of questions to the High Court under section 256(2) of the Income-tax ActNecessity of material or evidence before referring a matter to the Valuation Officer for opinion - reference to the Valuation Officer for valuation under section 133(6) of the Income-tax Act - Tribunal directed to refer to this Court the question whether a reference to the Valuation Officer under section 133(6) required prior material or evidence indicating unrecorded construction expenses. - HELD THAT: - The High Court, after hearing counsel, did not adjudicate the substantive question on the merits. Instead the Court directed the Tribunal to refer the specified question to the High Court for its opinion. The direction contemplates examination of whether the Assessing Officer or Tribunal must possess material or evidence suggesting that certain construction expenses were unrecorded before initiating a reference to the Valuation Officer under the statutory provision.Question referred to this Court for opinion; Tribunal ordered to make the reference within two months of receipt of certified copy of the order.Sufficiency of the Valuation Officer's report as material for the Assessing Officer to determine cost of construction - Tribunal directed to refer to this Court the question whether the Valuation Officer's report alone constituted sufficient material for the Assessing Officer to determine the cost of construction and whether the Tribunal was justified in deleting the addition made on that basis. - HELD THAT: - The High Court confined itself to directing a reference rather than resolving the contested legal question. The Court required the Tribunal to forward the question for the Court's opinion so that the sufficiency of the Valuation Officer's report as evidence for making additions to the assessee's income can be authoritatively determined.Question referred to this Court for opinion; Tribunal ordered to make the reference within two months of receipt of certified copy of the order.Final Conclusion: The High Court declined to decide the substantive issues and directed the Tribunal to refer the two specified questions to the High Court under section 256(2) of the Income-tax Act within two months; the reference application is disposed of accordingly. The High Court of Rajasthan directed the Tribunal to refer questions regarding the necessity of material for a Valuation Officer's opinion under section 133(6) of the Income-tax Act, 1961. The reference must be made within two months from the date of the order. The reference application under section 256(2) of the Income-tax Act, 1961, is disposed of accordingly.