2006 (4) TMI 78

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....J.-The writ petition raises an interesting question. The question is: is the Assessing Officer competent to seek valuation of the property under section 55A of the Income-tax Act, 1961, after he has already assessed the income of the assessee and passed the assessment order? We, accordingly, issue rule and dispose of the same at this stage by consent of counsel for the parties. The notice da....

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.... sold. Section 55A of the Income-tax Act, 1961 reads thus: "55A. With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer- (a) in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer....

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....he 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." Section 55A provides that the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer with a view to ascertain the fair market valu....

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.... order has been passed by the Assessing Officer. He is right that section 55A does not specifically prohibit so but it was not required to be prohibited specifically in section 55A as the very purpose of ascertaining the fair market value of the capital assets of an assessee for capital gains by the Assessing Officer is for the purposes of computing the total income of the assessee which may enabl....