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Issues:
Challenge against notice issued under section 16A(2) of the Wealth-tax Act for valuation of assets for multiple assessment years when no assessment proceedings were pending. Analysis: The writ petition challenged a notice issued by the Valuation Officer under section 16A(2) of the Wealth-tax Act for determining the market value of assets for five assessment years. The petitioner contended that no assessment proceedings were pending for the first three assessment years, and for the subsequent two years, no returns were filed, nor any proceedings were initiated under relevant sections of the Act. Additionally, it was highlighted that the Wealth-tax Officer had issued a notice under section 17 to reopen assessments for multiple years, including the five assessment years in question. The court examined sub-sections (1) and (2) of section 16A, which allow a reference to the Valuation Officer for the purpose of making an assessment. It was noted that without any assessment proceedings pending before the Wealth-tax Officer, the power to make a reference to the Valuation Officer is not applicable. As it was confirmed that no assessment proceedings were ongoing for the five assessment years at the time of the reference to the Valuation Officer or when the impugned notice was issued, the court deemed both the reference under section 16A(1) and the notice under sub-section (2) as incompetent and invalid. Consequently, the court quashed both the reference and the notice. In conclusion, the court allowed the writ petition, ruling in favor of the petitioner, and no costs were awarded in this matter.
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