TaxTMI 
TaxTMI 
2021 (10) TMI 574
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....e of Karnataka and also carries out agricultural activities. 4. The appellant in respect of the assessment year, which is under challenge before this Court i.e., 2008-2009, has filed a return of income on 28.1.2010 declaring the total loss of Rs. 1,05,57,700/-. The assessing officer has assessed the tax on a total income of the appellant at Rs. 8,55,52,040/- by passing an order under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act of 1961). The order was passed on 30.12.2009. 5. The appellant, being aggrieved by the assessment order, has preferred an appeal before the Commissioner of Income Tax (Appeals) and the Commissioner of Income Tax (Appeals) partly allowed the appeal of the appellant by an order dated 24/25.9.2013. The appellant thereafter preferred an appeal before the Income tax Appellate Tribunal (hereinafter referred to as the Tribunal) and the Tribunal by an order dated 22.9.2017 has dismissed the appeal. The appellant being aggrieved by the order passed by the Tribunal, has preferred the present appeal. 6. The learned counsel for the appellant has stated before this Court that the appellant's premises was searched in connection wit....
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....y reason and consequently passed a perverse order on facts and circumstances of the case? 5. Whether the Tribunal erred in law in not holding that consent cannot confer jurisdiction and income has to be determined on the basis of facts and consequently passed a perverse order on facts and circumstances of the case? 6. Whether the Tribunal was justified in law in not holding that the reference to the valuation officer under the provisions of Section 142A of the Act by the search officer as regard to the estimation of cost of extraction of ore is Ultra Vires the provision of Section 142A of the Act and further without prejudice not ignoring such valuation report as having material errors and is made in violation of the principles of natural justice on the facts and circumstances of the case?" 9. The undisputed facts of the case reveal that the appellant is a mining contractor and was operating the mines belonging to one Balaji Produce Company Group, a registered partnership firm, over the mines taken on lease from the Government of Karnataka. The appellant was excavating the mines for over two years and collected the excavated iron ore and as he was not able to sell the iron ore....
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....ngineer conducted a professional survey of the mines and stock and submitted a valuation report on 18.3.2018. The valuation of the stock as per the valuation report was estimated at Rs. 11,10,01,980/-. The assessing authority accepted the figure arrived at by the Valuation Officer in his valuation report as the correct value of the stock as on 31.3.2008 to assess the income of the appellant. 13. The assessing officer also relied upon the statement given by the appellant under Section 131, dated 31.3.2008, wherein the appellant confirms the statement given under Section 132(4) on 14.3.2008 and accepted the valuation of Rs. 11,10,01,980/- as per the valuation report. 14. The appellant has objected to the assessing officer adopting the valuation given in the report of the Registered Valuer for the purposes of assessing the income of the appellant. 15. A Specific question of law has been framed by this Court in respect of the aforesaid issue i.e., substantial question law No.6 and specific grounds have also been raised in the memo of appeal in respect of the aforesaid issue. 16. The basic question, which arises before this Court is, whether the assessment order passed on a valuatio....
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....a reference to a Valuation Officer and it is only, the assessing officer, who has got such power. 22. Section 142A of the Act of 1961 empowers the assessing officer, for the purpose of assessment or reassessment, to make a reference to the Valuation Officer, if he is not satisfied with the accounts provided by an assesssee. As per Explanation to Section 142A, the 'Valuation Officer' has the same meaning as defined in clause (r) of Section 2 of the Wealth Tax Act, 1957 (hereinafter referred to as 'Wealth Tax Act'). 23. In the present case, the moot question that arises for consideration before this Court is, whether the person, who has valued the stock in trade i.e., stock of iron ore, was a person, who is a Valuation Officer, as defined under clause (r) of Section 2 of the Wealth Tax Act. 24. As per definition in Section 2(r) of the Wealth Tax Act, 'Valuation Officer' means, a person appointed as a Valuation Officer under Section 12A of the Wealth Tax Act and includes a Regional Valuation Officer, a District Valuation Officer, and an Assistant Valuation Officer. In other words, all these four categories of persons, namely Regional Valuation Officer....
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....value of the asset, in the opinion of the Assessing Officer, exceeds the aforesaid amount, the functions shall be performed by the District Valuation Officer; (ii) if the value of the assets as declared in the return made by the assessee under section 14 or section 15 exceeds Rs. 10 lakhs but does not exceed Rs. 50 lakhs or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, falls within the aforesaid limits, the functions shall be performed by the Valuation Officer; and (iii) if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 10 lakhs, or if the asset is not disclosed or the value of the asset is not declared in such return or no such return has been made and the value of the asset, in the opinion of the Assessing Officer, does not exceed the aforesaid amount, the functions shall be performed by the Assistant Valuation Officer : Provided that the District Valuation Officer referred to in clause (i) having jurisdiction in respect of the area may, if he considers i....
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....d Valuer. A Registered Valuer can appear on behalf of an assessee before the assessing officer under the provisions of Section 34AB of the Wealth Tax Act. A person who is registered as a Registered Valuer cannot be a Valuation Officer. 30. Section 16A of the Wealth Tax Act empowers the assessing officer to make a reference to a Valuation Officer, in a case, where the assessing officer is of the opinion that the fair market value of the asset exceeds the value of the asset as returned by more than such percentage of the value of the asset as returned or by more than such amount as may be prescribed in that behalf or in any case, where having regard to the nature of the asset and other relevant circumstances, the assessing officer deems it necessary to do so. 31. In the present case, the facts of the case reveal that the appellant has disclosed the closing stock of iron ore at Rs. 5,96,74,794/- as against the valuation of Rs. 11,10,01,980/- obtained by the authorized officer. The same fact could have led the assessing officer to believe that the appellant has suppressed the value of the asset in the return of income filed by him and the proper course of action would have been to ge....