TaxTMI 
TaxTMI 
TaxTMI 
2003 (7) TMI 4
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....ment in respect of the assessment year 1982-83. The Income-tax Officer then made an addition of Rs. 2,79,000 in respect of the assessment year 1982-83 and Rs. 1,77,000 in respect of the assessment year 1983-84 as undisclosed investment in the construction of the house. The assessee's appeals from the assessment orders were turned down by the Commissioner of Income-tax (Appeals), Gauhati. The Income-tax Appellate Tribunal, however, following an earlier decision, allowed the assessee's appeal and held that the Assessing Officer could not have referred the question of the cost of construction of the assessee's house to the Valuation Officer. In this background the following question was referred to the High Court under section 256(2) of the Act: "Whether, on the facts and in the circumstances of the case, the Tribunal erred in law by holding that the Assessing Officer cannot refer the matter to the Valuation Cell for estimating the cost of construction of the house property?" The Division Bench of the High Court held that although the Assessing Officer could not have referred the question of the cost of construction of the assessee's house to the Valuation Officer under section 55A ....
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....ny person, may make "such enquiry as he considers necessary". While conceding that section 55A could not in terms apply to the assessee's case, the respondents' contention was that the Assessing Officer was otherwise empowered under the other provisions of the Act to refer the matter to the Valuation Officer. According to the respondents the powers of enquiry invested in the Assessing Officer under sections 131(1), 133(6) and 142(2) were wide and that this court should not read in any limitation to this power. It was further submitted that there was nothing in the Wealth-tax Act, 1957, which precluded the Valuation Officer from giving a valuation report in respect of any matter not covered by the provisions of that Act. Therefore, it was submitted, the Assessing Officer's reference to a Valuation Officer was correct and could not be held to be without jurisdiction. The Valuation Officer to whom a requisition was sent by the Assessing Officer in this case, is an officer appointed under the Wealth-tax Act, 1957. Section 2, clause (r) of the wealth-tax Act, 1957, defines 'Valuation Officer' as meaning a person appointed as a Valuation Officer under section 12A of the Wealth-tax Act a....
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....estimating the value of the asset after hearing such evidence as the assessee may produce and after considering such evidence as the Valuation Officer may require and, after taking into account all relevant materials which he has gathered, the Assessing Officer is required to complete the assessment in conformity with the estimate of the Valuation Officer as far as the valuation of the particular asset in question is concerned in terms of sub-section (6) of section 16A. The decision of the Valuation Officer is amendable by him under section 35(aaa) of the Wealth-tax Act. The decision may also be the subject matter of appeal under section 23(ha) in which event the appellate authority is required, under section 23(3A) to give the Valuation Officer an opportunity of being heard or if necessary direct the Valuation Officer to hold a fresh inquiry. There is a similar provision in respect of appeals before the Commissioner (Appeals). It is thus seen that the Assessing Officer, under section 16A, does not retain the power of enquiry. There is a similar provision in respect of the particular asset in respect of which the requisition is made to the Valuation Officer. The entire process of ....
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....cer is of opinion that the value so claimed is less than its fair market value; (b) in any other case, if the Assessing Officer is of 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 necessary so to do, and where any such reference is made the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clauses (ha) and (i) of sub-section (1) and sub-sections (3A) and (4) of section 23, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with the necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Assessing Officer under sub-section (1) of section 16A of that Act. Explanation.--In this section, 'Valuation Officer' has the same meaning, as in clause (r) of section, 2 of the Wealth-tax Act, 1957 (27 of 1957)." Clearly this section in terms can have no appli....
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....ons." The court's power to issue commissions is contained in sections 75 to 78 of the body of the Code and Order XXVI of the Schedule to the Code. Sections 76 to 78 are not relevant for our purposes. Section 75 which delineates the power of court to issue commissions says: "75. Power of court to issue commissions.--Subject to such conditions and limitations as may be prescribed, the court may issue a commission- (a) to examine any person; (b) to make a local investigation; (c) to examine or adjust accounts; or (d) to make a partition; (e) to hold a scientific, technical, or expert investigation; (f) to conduct sale of property which is subject to speedy and natural decay and which is in the custody of the court pending the determination Of the suit; and (g) to perform any ministerial act." Order XXVI provides for the procedure for issuing commissions in respect of each of the purposes mentioned in sections 75. Thus rules 1 to 8 are in respect of commissions to examine witnesses, rules 9 to 10C are in respect of commissions for local investigations; rules 11 and 12 relate to commissions to examine accounts and rules 13 and-14 pertain to commissions to make partitions. If a....
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....ing the general powers of enquiry to make a reference in different circumstances and for other purposes. It is noteworthy that section 55A was introduced in the Act by the Taxation Laws (Amendment) Act, 1972, when sections 131(1), 133(6) and 142(2) were already on the statute book. Learned counsel for the appellant has correctly submitted that if the power to refer any dispute to a Valuation Officer were already available in sections 131(1), 133(6) and 142(2), there was no need to specifically empower the Assessing Officer to do so in certain circumstances under section 55A. We may also note section 269L of the Act which enables the competent authority appointed under section 269B: "(1)(a) for the purpose of initiating proceedings for the acquisition of any immovable property under section 269C or for the purpose of making an order under section 269F in respect of any immovable property, require a Valuation Officer, to determine the fair market value of such property and report the same to him; (b) for the purpose of estimating the amount by which the compensation payable under sub-section (1) of section 269J in respect of any immovable property may be reduced or, as the case ma....