Types of cases to be referred to Valuation Cell. - Income Tax - 490/CBDT

INSTRUCTION NO. 490/CBDT December 22, 1972 Section(s) Referred: 55A of Income Tax Act , 15(6) of Gift Tax Act , 16A of Wealth Tax Act Statute: Wealth Tax Act, 1957 Attention is invited to Instruction No.265 in F.NO.319/5/70-W.T dated 28th December,1971 wherein the Board specified the types of cases to be referred to the Valuation Cell. 2. In view of the amendments introduced by the Taxation Laws(Amendment) Act, 1972 and the Rules framed thereunder the Board had examined whether the Valuation Cell could continue to deal with the cases after the 15th November, 1972 or after 31st December, 1972 when the other remaining provisions contained in the Taxation Laws(Amendment) Act come into force. In some cases the Executive Engineers attached to the valuation cell have also been appointed as Arbitrators by the Tribunal. 3. The Board are advised that, as there is a specific provision in section 25 of the Taxation Laws(Amendment)Act, the position of the Executive Engineers who have been appointed as Arbitrators in the appeals before the Tribunal would not be affected. In respect of other cases the position would be as under:- i) it is only the type of cases which are mentioned in section 35 A of the I.T.Act, sec.16A of the W.T.Act sec.15(6) of the G.T.Act which would be affected from after 31-12-72. All cases in which the Valuation Cell has already done the preliminary work and it is felt that the valuations which they might have made are likely to be near about the value returned by the assessees, may be finalised and the reports may be sent to the Wealth-tax Officers so that they could treat those reports as advisory and act accordingly; ii)where the Valuation Cell has not started the work on any reference and the cases are likely to be covered by the provisions of sec.55A of the I.T.Act, sec.16A of the W.T.Act sec.15(6) of the G.T.Act, the papers may be sent back to the officer concerned for a decision whether he would like to refer it formally to the Valuation Cell, after the 31st December, 1972; iii) In cases where the Valuation Cell have already sent their reports to the Wealth-tax Officer but the case is not decided before the 1st January, 1973, the ITO may refer it back formally to the Valuation Cell if it falls within the ambit of sec.55A of the I.T.Act, Section 16A of the W.T Act and sec.15(6) of the G.T.Act. The valuation Cell would have to give a fresh report after following the procedure laid down in the Act; iv) As regards the cases which have been referred to the Valuation Cell for determining the cost of constructions or for determining an investment for purposes of prosecution or for other matters which are not statutory, the cases should be continued to be dealt with by the Valuation Cell. v)As regards the Estate Duty cases, as the Taxation Laws(Amendment) Act, 1972 does not affect those cases, they would continue to be handled by the Valuation Cell. 4. The contents of these instructions may please be brought to the notice of all the assessing officers in your charge. Suitable instructions may be issued to take appropriate action immediately.