Para. III(b) of Board's Circular No. 3 W.T. of 1957, dated September 28, 1957-Clarification in regard to withdrawal thereof - Income Tax - 384/1984

Para. III(b) of Board's Circular No. 3 W.T. of 1957, dated September 28, 1957-Clarification in regard to withdrawal thereof Circular No. 384 Dated 6/7/1984 Attention is invited to instructions contained in Para. III(b) of the Board's Circular No. 3 W.T. of 1957, dated September 28, 1957, wherein it was stated that the valuation fixed in one assessment year need not be disturbed for two succeeding assessment years except in certain circumstances. The said Circular was withdrawn by the Board's letter No. 319/12/74, W.T., dated April 5, 1974. Certain references have been received in the Board to the effect that some assessees rely on the Circular No. 3 to argue before Valuation Officers that there is no valid reason for enhancing the value adopted in an earlier assessment year by the Wealth-tax Officer in cases where there is no substantial improvement or extension to the property. The matter has been considered in the Board and it is clarified that in view of the insertion of section 16A of the Wealth-tax Act, 1957, and Board's Circular No. 96 which, inter alia, states as under: "Under this provision, the Wealth-tax Officer may refer the valuation of any capital asset to the Valuation Officer in a case where the assessee has got the asset valued by a registered valuer and the value returned is in accordance with the estimate made by the registered valuer if he is of the opinion that the value as estimated by the registered valuer is less than the fair market value of the asset. Other cases in which reference may be made to the Valuation Officer would be where the Wealth-tax Officer is of the opinion that the fair market value of the asset exceeds the value of the asset as returned by more than 33-1/3% of the value returned or by more than Rs. 50,000, whichever is less, or where having regard to the nature of the asset and other relevant considerations, the Wealth-tax Officer considers it necessary to do so." The instructions contained in para. III(b) of Board's Circular No. 3 of 1957 stand superseded. In view of what is stated above and particularly the Board's letter No. 319/12/74, W.T., dated April 5, 1974, it is obvious that para. III(b) of Circular No. 3 W.T. of 1957 is no longer in force. Hindi version of this Circular will follow. (Sd.) A.K. Fotedar, Officer on Special Duty (WT), Central Board of Direct Taxes.