1979 (3) TMI 11 - HC - Wealth-tax

Summary

Issues Involved:
1. Jurisdiction of Wealth-tax Officer (WTO) to refer property valuation u/s 16A for completed assessment years.
2. Validity of valuation method adopted by the Valuation Officer.
3. Compliance with procedural requirements u/s 16A of the Wealth-tax Act.

Summary:

1. Jurisdiction of WTO to Refer Property Valuation u/s 16A for Completed Assessment Years:
The petitioner challenged the jurisdiction of the WTO to refer the valuation of the property for completed assessment years without reopening the assessments u/s 17. The court held that the power to make a reference u/s 16A is for the purpose of making an assessment, which includes reassessment but only when the assessment is not complete or has been reopened u/s 17. Since the assessments for the years 1968-69 to 1974-75 were complete and not reopened, the WTO had no jurisdiction to make any reference u/s 16A for these years. However, for the assessment years 1975-76 and 1976-77, where the assessments were not complete, the reference was valid.

2. Validity of Valuation Method Adopted by the Valuation Officer:
The petitioner contended that the Valuation Officer adopted the "land and building" method, which was deprecated by the Tribunal and courts, instead of the rental method. The court noted that the Valuation Officer had not yet formed a final opinion and had only issued notices under s. 16A(4) to propose a valuation and invite objections. The petitioner was given the opportunity to challenge the valuation method during the proceedings.

3. Compliance with Procedural Requirements u/s 16A of the Wealth-tax Act:
The court examined the procedural compliance with s. 16A, which involves issuing notices for production of documents and providing opportunities for objections. The court found that the Valuation Officer followed the required procedures and that the petitioner could still present objections regarding the valuation method.

Conclusion:
The court quashed the references and notices u/s 16A for the assessment years 1968-69 to 1974-75 as invalid and without jurisdiction. For the assessment years 1975-76 and 1976-77, the references and notices were held valid, and the Valuation Officer was directed to proceed in accordance with the law, including any binding decisions from courts or tribunals. The rule was disposed of accordingly, with no order as to costs.