Valuation report power in assessment proceedings may arise from the Act's enquiry provisions despite a mistaken statutory citation.

Section 55A of the Income-tax Act is confined to fair market value for capital gains and does not itself authorise valuation of construction cost in assessment proceedings. The Assessing Officer's power to seek a Departmental Valuation Officer's report flows from the Act's enabling and machinery provisions, including sections 131, 133(6) and 142(2), which permit enquiry, information gathering and expert valuation evidence. A mistaken citation of the source provision does not invalidate the reference where substantive authority exists under the Act. The Assessing Officer is therefore competent to obtain a valuation report for estimating construction cost.

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Issues: Whether, in assessment proceedings, the Assessing Officer can call for a valuation report from the Departmental Valuation Officer for estimating the cost of construction of a house property.

Analysis: Section 55A of the Income-tax Act is confined to the ascertainment of fair market value for capital gains purposes and is not the source of power for valuing construction cost in assessment proceedings. The power to seek such valuation was found to flow from the enabling machinery provisions contained in sections 131, 133(6) and 142(2) of the Income-tax Act. Those provisions permit enquiry, collection of information and, by analogy with the court's power to issue commission for expert investigation, authorise the Assessing Officer to obtain expert valuation evidence. The use of a wrong provision number in the requisition would not invalidate the valuation report where the substantive power otherwise exists.

Conclusion: The Assessing Officer is competent to refer the matter to the Valuation Officer for estimating the cost of construction, and the Tribunal was wrong in holding otherwise.

Ratio Decidendi: Enabling and machinery provisions in the Income-tax Act authorise the Assessing Officer to obtain expert valuation for assessment purposes, and a mistaken citation of the source provision does not vitiate the reference where the power exists under the Act.

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