2015 (10) TMI 489 - HC - Income Tax

Registration as Valuer: Court Quashes Rejection, Clarifies Experience Rule

Jai Parkash Sharma And Another Versus Chief Commissioner of Income-Tax And Others

The court quashed the order rejecting the petitioners' application for registration as a 'Valuer of Immovable Property' under the Wealth Tax Act, 1957. It ... Application of the petitioners for registration as a “Valuer of Immovable Property” under Section 34AB of the Wealth Tax Act, 1957 rejected - reasoning given by the said respondent on rejection of application was that the applicants must have been practicing as a Consulting Engineer, Valuer of real estate, Surveyor or Architect for a period of not less than ten years after having obtained the qualification as defined in Rules 8A(2)(i) and it was noticed that the applicant had obtained the graduate Degree in Civil Engineering in 2009 and, therefore, the experience acquired prior to the acquisition of the degree would be of no benefit - Held that:- Very recently, the same issue came up before the Apex Court in K.K.Dixit Vs. Rajasthan Housing Board & others [2015 (10) TMI 376 - SUPREME COURT] wherein the promotions were to the posts of Project Engineer (Senior) from amongst the Project Engineer (Juniors) who were Diploma holders with 7 years total experience of service. The dispute was again between Diploma holders and the Degree holders. Accordingly, it was held that the qualifications of AIME and the experience of service had to be post the acquisition of the degree. In the present case, as noticed, the issue is not of any dispute inter se the Diploma holders and Degree holders. The Rules provide that a person has to be a graduate in Civil Engineering and he must have the experience of working either under Government, private employment or on the academic side. In the alternative, the experience as a Consulting Engineer, Valuer of not less than 10 years, has been made mandatory, subject to certain conditions. The observations made by the Apex Court in the case of A.K.Raghumani Singh (2000 (4) TMI 819 - SUPREME COURT) and Anil Kumar Gupta (1999 (11) TMI 867 - SUPREME COURT) would squarely apply and the respondents were not justified in reading the qualification into the conjective word and implying that experience had to be subsequent to the acquisition of the degree. In such circumstances, the question of law is answered in favour of the writ petitioners that it is not necessary to gain the experience under the Rules, after the acquisition of the educational qualifications and accordingly, the order dated 31.12.2014 (Annexure P11), is quashed and the writ petition is allowed. The respondents shall reconsider the applications of the petitioners, afresh and decide the same within a period of 2 months from the receipt of a certified copy of this order. Issues Involved:1. Validity of the rejection of the petitioners' application for registration as a 'Valuer of Immovable Property' under Section 34AB of the Wealth Tax Act, 1957.2. Whether the required experience must be gained after obtaining the necessary educational qualifications.Issue-wise Detailed Analysis:1. Validity of the Rejection of the Petitioners' Application:The petitioners challenged the order dated 31.12.2014, passed by the Chief Commissioner of Income Tax, Haryana, which rejected their application for registration as a 'Valuer of Immovable Property' under Section 34AB of the Wealth Tax Act, 1957. The rejection was based on the premise that the petitioners did not meet the requisite conditions under the relevant rules, specifically the requirement of ten years of experience after obtaining the qualification as defined in Rules 8A(2)(i) of the Wealth Tax Rules, 1957.The petitioners argued that they had applied for registration on 23.11.2011 and were granted registration on 2.3.2012 for three years. They had worked continuously with the department to its satisfaction and applied for continuation of registration on 18.11.2014. They contended that they had more than ten years of experience, having worked with Taneja & Associates since May 2001, and had the necessary qualifications after obtaining their graduate degree in Civil Engineering in 2009.The department, in its written statement, maintained that the petitioners did not fulfill the statutory requirements. The earlier registration was deemed erroneous and did not confer any indefeasible right to claim registration. The degree was obtained through Distance Education, and the competent authority was within its rights to rectify the mistake. The department argued that the experience of ten years would be completed in 2019, thus justifying the rejection.The court held that the petitioners were initially granted registration for three years, and upon expiry, they applied afresh. The respondents were justified in reconsidering the matter afresh. The initial registration did not grant the petitioners a perpetual right to continue. The registration period was specific, and the Chief Commissioner had the authority to delete the name from the valuation register if necessary.2. Requirement of Experience After Obtaining Educational Qualifications:The second issue addressed whether the required ten years of experience must be gained after obtaining the necessary educational qualifications. The court examined various precedents and the relevant rules to determine this.The court referred to several Supreme Court judgments, including M. Suresh Nathan Vs. Union of India (1992 AIR (SC) 564), M.B. Joshi Vs. Satish Kumar (1993 AIR (SC) 267), Subhash Vs. State of Maharashtra (1995 (Sup3) SCC 332), D. Stephen Joseph Vs. Union of India (1997 (4) SCC 753), Anil Kumar Gupta & others Vs. Municipal Corporation of Delhi & others (2000) 1 SCC 128, A.K. Raghumani Singh & others Vs. Gopal Chandra Nath & others (2000 (4) SCC 30), and K.K. Dixit Vs. Rajasthan Housing Board & others (2014 (4) SCT 219).The court concluded that the experience required under the rules did not necessarily have to be gained after obtaining the educational qualifications. The relevant provisions of Rule 8A of the Wealth Tax Rules, 1957, were analyzed, and it was determined that the respondents were not justified in interpreting the rule to mean that the experience had to be subsequent to the acquisition of the degree.The court held that the observations made in A.K. Raghumani Singh and Anil Kumar Gupta cases applied, and the respondents were not justified in reading the qualification into the conjunctive word and implying that experience had to be subsequent to the acquisition of the degree.Conclusion:The court quashed the order dated 31.12.2014 and allowed the writ petition. The respondents were directed to reconsider the applications of the petitioners afresh and decide within two months from the receipt of a certified copy of the order.