TaxTMI 
TaxTMI 
1979 (10) TMI 97
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessing the partners interest in the firm according to WT Rules, the WTO adopted the value as worked out by the assessee's valuer, who happens to be an approved valuer, The assessments for the asst. yrs. 1970-71 to 1973-74 were completed by the WTO on 26th Feb., 1976 and the assessments for the subsequent two years were completed on 31st March, 1976. Subsequently, on a reference made by the WTO in October 1976, the Deptl. valuer valued the property for wealth-tax purposes. The Deptl. Valuer submitted his report valuing the said property at Rs. 12,44,000 for the first four years and at Rs. 13,29,000 for the last two years. This reference was made by the WTO probably on the basis of a revenue audit objection received by him subsequent to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... come up in appeal before us. It was argued by the ld. counsel for the assessee, Shri K.C. Patel that the Deptl. Valuer's report did not form part of the records with the WTO when the assessment orders were passed. Therefore, the Commr. exceeded his jurisdiction under s. 25(2) in seeking to revise the assessment orders and treating them as erroneous and prejudicial to the interest of Revenue. He argued that the Deptl. Valuer's report was obtained subsequent to the passing of the assessment orders and that the Commr. was not justified in looking into it for the purposes of exercising the jurisdiction under s. 25(2). He pointed out that the facts in the case of Ganga Properties vs. ITO (1979) 118 ITR 447 (Cal) as decided by the Calcutta High ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....refore, it should not, it was contended, interfere with the Commr.'s order. It was stated that the WTO did not apply in his mind but accepted the Valuer's report given by the assessee in a routine fashion and passed the assessments for all these years provisionally on the same day without making necessary enquiries. He pointed out that the Valuer's report submitted by the assessee from time to time indicated different values put upon the property and that the report submitted in 1977 and that submitted in 1975 disclosed a substantial difference in the value of about Rs. 3 lakhs which should have led the ITO to make further enquiries and not rest content with the reports of the valuer of the assessee. In the interests of Revenue, it was argu....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... form part of the record of the ITO for the purposes of s. 263. It is only after the proceeding is lawfully initiated by the Commr. on the basis of the record of the ITO that the Commr. can take it as at any material which may come into existence later on. As the Valuer's report was not in existence at the time, the WTO's orders were passed under it must be held by us, in view of the above Calcutta decision, that the Commr. exceeded his jurisdiction under s. 25(2) of the WT Act. While exercising the powers under s. 263, the Commr. has to call for the record of the proceedings which was before the ITO and examine it in order to consider whether on the basis of the materials which were before the ITO and formed part of the record, the order p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....te that the WTO could not be said to have abdicated his functions altogether and mechanically accepted the Valuer's report to the detriment to the revenue. We do not wish to express any opinion as to whether the Deptl. Valuer's report is preferable to that of the assessee's Valuer. We only wish to state here that the assessment orders as made by the WTO for the years under appeal do not by themselves give rise to an inference that enquiries, though called for, were avoided altogether by the WTO while making the assessments. For these reasons, we therefore, hold that the Delhi decision 99 ITR 375, would not apply to the facts of this case. Similarly, the Supreme Court decision in the case of Smt. Tara Devi Aggarwal vs. CIT 1973 CTR (SC) 107 ....