Pending assessment requirement governs valuation references under wealth-tax law; reference without jurisdiction was quashed.

Section 16A of the Wealth-tax Act, 1957 can be invoked only for the purpose of making an assessment, so the jurisdiction to refer an asset for valuation depends on an assessment that is actually pending or otherwise lawfully in progress. Proceedings for assessment begin when a return is filed or when a person fails to comply with notice under Section 14(2). On the admitted facts, no assessment was pending when the reference was made, so the statutory precondition was absent. The Madhya Pradesh High Court held the reference to the Valuation Officer, the valuation proceedings, and the valuation order to be without jurisdiction and quashed them.

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Issues: Whether the Wealth-tax Officer could validly refer valuation of an asset to the Valuation Officer under Section 16A of the Wealth-tax Act, 1957 when the assessee's assessment for the relevant year was not pending; and whether the reference and subsequent valuation proceedings were liable to be quashed as without jurisdiction.

Analysis: The jurisdiction under Section 16A is conditioned by the opening words "for the purpose of making an assessment". That requirement governs both clause (a) and clause (b), including clause (b)(ii). Proceedings for assessment commence when a return is made, or when a person fails to comply with notice under Section 14(2) of the Wealth-tax Act, 1957. On the admitted facts, the assessment for the relevant year was not pending when the reference was made, so the statutory precondition for invoking Section 16A was absent.

Conclusion: The reference to the Valuation Officer was without jurisdiction and the subsequent proceedings could not be sustained.

Final Conclusion: The petition succeeded and the impugned reference, valuation proceedings, and valuation order were quashed, leaving the Wealth-tax Officer free to make a fresh reference in accordance with law.

Ratio Decidendi: A reference to a Valuation Officer under Section 16A of the Wealth-tax Act, 1957 is valid only when made for the purpose of an assessment that is actually pending or otherwise lawfully in progress.

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