Valuation Officer reference after completed assessment is invalid under wealth-tax valuation procedure

A reference to the Valuation Officer under section 16A of the Wealth-tax Act is valid only before assessment is finalised, when the Wealth-tax Officer considers such reference necessary having regard to the assets and surrounding circumstances. A reference made after completion of the assessments does not satisfy that statutory condition and is invalid for the earlier assessment years concerned. The challenge therefore succeeded to that extent.

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Issues: (i) Whether a reference to the Valuation Officer under section 16A of the Wealth-tax Act, 1957, made after completion of assessment is valid for the earlier assessment years.

Analysis: Section 16A permits a reference to the Valuation Officer only before the assessment is finalised, when the Wealth-tax Officer considers it necessary having regard to the nature of the assets and other relevant circumstances. Where the reference is made after the assessments have already been completed, the statutory condition for making such reference is not satisfied.

Conclusion: The reference under section 16A was invalid for the assessment years 1972-73 to 1975-76 and the challenge succeeded to that extent.

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