Section 55A valuation references require strict statutory conditions; later widening of the provision cannot apply retrospectively.

Section 55A, as applicable to the relevant assessment year, authorised a reference to the Valuation Officer only where the assessee's declared value was lower than the fair market value or within the statute's limited conditions. Because the assessee's value as on 01.04.1981 was not lower in the manner required, the Assessing Officer could not validly invoke that provision. The later amendment enlarging the scope of section 55A was held inapplicable retrospectively, and binding jurisdictional precedent supported that view. The valuation reference was therefore invalid, the resulting addition could not stand, and the Revenue's challenge failed.

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Issues: Whether the Assessing Officer could validly refer the valuation of the capital asset to the Departmental Valuation Officer under section 55A when the value declared by the assessee as on 01.04.1981 was higher than the fair market value determined by the Department.

Analysis: Section 55A, as applicable to the relevant assessment year, permitted reference to the Valuation Officer only where the value claimed by the assessee was less than the fair market value, or in other situations falling within the statutory conditions. The assessee's declared value was not lower than the fair market value in the manner contemplated by the provision. The subsequent amendment enlarging the scope of section 55A could not be applied retrospectively for the year in question. The issue stood covered by binding jurisdictional precedent.

Conclusion: The reference made by the Assessing Officer under section 55A was not valid, and the assessee's valuation could not be displaced on that basis.

Final Conclusion: The addition made on the basis of the invalid valuation reference was rightly deleted, and the Revenue's challenge failed.

Ratio Decidendi: Under section 55A, as it stood for the relevant year, a reference to the Valuation Officer could be made only where the assessee's declared value was less than the fair market value, and the later expanded wording could not be applied retrospectively.

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