Supreme Court affirms Departmental Valuation Officer reference under Income Tax Act

The Supreme Court upheld the validity of the reference to the Departmental Valuation Officer under Section 142A of the Income Tax Act due to the pending appeal. The Court also affirmed the use of local Public Works Department rates for determining the cost of construction, dismissing the appeal without costs and disposing of any pending applications.

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Issues: Validity of reference to Departmental Valuation Officer, Applicability of Public Works Department rates for cost of construction

In the judgment, the Supreme Court addressed the validity of the reference to the Departmental Valuation Officer and the applicability of Public Works Department rates for determining the cost of construction. The Tribunal had initially held the reference invalid but also stated that local Public Works Department rates should be used instead of Central Public Works Department rates. The Court noted the insertion and subsequent amendments to Section 142A of the Income Tax Act, allowing for the reference to the Valuation Officer in certain circumstances. Since the assessment was not final due to a pending appeal, the reference was deemed permissible. However, the Court upheld the Tribunal's decision to use local Public Works Department rates, finding no reason to interfere with this aspect of the judgment. Consequently, the appeal was dismissed, and no costs were awarded. Any pending applications were also disposed of by the Court.

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