2010 (2) TMI 631

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....ng the fact that the Assessing Officer did note same in writing in the order-sheet dated December 12, 2005 ?   B. Whether on the facts and circumstances of the case the Income-tax Appellate Tribunal erred in law in not considering the fact that the Income-tax Act, 1961 does not prescribe manner of forming opinion before referring the matter to the Departmental Valuation Officer under section 55A of the Income-tax Act, 1961?"   2. We have gone through the judgment and order of the Commissioner of Income-tax (Appeals) and also the judgment and order impugned before us. While reading the same we are of the view that in this matter no question of law is involved far less substantial one for the following reasons as stated hereun....

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....luation report the Assessing Officer came to conclusion that the assessee had overstated the value of the opening stock at Rs. 2,26,54,893 and instead of accepting the loss, as shown in the return the Assessing Officer has determined the net profit of Rs. 6,09,025. Thus the conclusion was arrived at by the Assessing Officer was based on valuation. Therefore, the point raised before the Commissioner of Income-tax (Appeals) that the valuation was got to be done by the Assessing Officer without compliance with section 55A of the Income-tax Act, 1961. According to the assessee reference to the valuation officer is without jurisdiction as per condition for reference was not satisfied. According to the assessee before making any reference the Ass....

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....sing Officer may refer the valuation of capital asset to a Valuation Officer-   (a) in a case where the value of the asset as claimed by the asses-see is in accordance with the estimate made by a registered valuer, if the Assessing Officer is of the opinion that the value so claimed is less than its fair market value.   (b) In any other case, if the Assessing Officer is of the opinion (i) that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such percentage of the value of the asset as so claimed or by more than such amount as may be prescribed in this behalf, or   (ii) That having regard to the nature of the asset and other relevant circumstances, it is nec....