Belated Section 50C(2) valuation challenge fails where an effective statutory appeal is available against the assessment
A belated request for a Valuation Officer reference under Section 50C(2) was declined because the assessee had earlier accepted the registering authority's valuation and had not taken timely steps to dispute it; on those facts, the Assessing Officer was justified in treating the request as not bona fide or reasonable. The writ petition was also not entertained because an effective statutory appeal was available under Section 246, and the factual valuation dispute could be examined in that forum. The assessment order was therefore left undisturbed, and the assessee was directed to pursue the appellate remedy.
Issues: (i) whether the assessee was entitled, on the facts of the case, to a reference to the Valuation Officer under Section 50C(2) of the Income-tax Act, 1961 for the property sold; and (ii) whether the writ petition should be entertained when an efficacious statutory appeal under Section 246 of the Income-tax Act, 1961 was available.
Issue (i): whether the assessee was entitled, on the facts of the case, to a reference to the Valuation Officer under Section 50C(2) of the Income-tax Act, 1961 for the property sold.
Analysis: The claim under Section 50C was raised only at the fag end of the assessment proceedings, after the return had been filed belatedly and after notices under Sections 143(2) and 142(1) had been issued. The assessee had earlier accepted the valuation adopted by the registering authority and had not taken timely steps to dispute it. The Court held that the assessee's conduct was relevant in assessing whether the request was bona fide, fair and reasonable, and on those facts the Assessing Officer was justified in declining the reference.
Conclusion: The request for reference to the Valuation Officer was not accepted on the facts of the case and the assessee did not succeed on this issue.
Issue (ii): whether the writ petition should be entertained when an efficacious statutory appeal under Section 246 of the Income-tax Act, 1961 was available.
Analysis: The Court treated the availability of the appellate remedy as a material factor. Since the assessment order could be challenged before the Commissioner (Appeals), and the factual dispute over valuation could be examined in that forum, the extraordinary writ jurisdiction was not invoked.
Conclusion: The writ petition was not entertained and the assessee was relegated to the statutory appeal remedy.
Final Conclusion: The assessment order was left undisturbed, and the assessee was directed to pursue the appellate remedy in accordance with law.
Ratio Decidendi: A belated and factually unsupported invocation of Section 50C(2) does not compel interference in writ jurisdiction, especially where the assessee has an effective statutory appellate remedy to challenge the assessment.
TaxTMI 
AI Drafter ✕
TaxTMI 
