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Issues involved:
The main issue in this case involves the authority of the Assessing Officer to refer a matter to the Valuation Officer for determining the cost of construction of a property after the completion of assessment proceedings. Judgment Details: The petitioner filed a writ petition seeking to quash the proceedings where the second respondent requested materials for property valuation post-assessment. The petitioner argued that there is no provision in the Income-tax Act enabling such referrals after assessment completion, except u/s 55A for fair market value determination for capital gains assessment. The court granted an injunction against further proceedings, leading to a counter-affidavit by the respondents claiming hindrance in assessment completion due to lack of valuation report. Counsel for the petitioner cited a Punjab and Haryana High Court decision supporting the petitioner's claim. The Revenue's counsel, however, relied on an Andhra Pradesh High Court judgment asserting that u/s 55A empowers valuation for various purposes under Chapter IV of the Act. The court favored the Andhra Pradesh High Court's interpretation, emphasizing the broad scope of u/s 55A beyond capital gains assessment. It highlighted the importance of asset valuation in preventing tax evasion and rejected the petitioner's argument that u/s 55A is limited to capital gains assessment only. Consequently, the writ petition was dismissed, allowing the petitioner to challenge any future orders separately.
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