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TMI Blog2006 (4) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... view, therefore, the reference made by the Assessing Officer to the Valuation Officer for determination of the fair market value of the aforestated property is without competence and as a consequence thereof, the notice dated April 19, 2005 issued under section 55A of the Income-tax Act, 1961 is rendered bad in law and we quash the said notice - - - - - Dated:- 3-4-2006 - Judge(s) : R. M. LODHA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by R.M. Lodha J.-The writ petition raises an interesting question. The question is: is the Assessing Officer competent to seek valuation of the property under section 55A of the Income-tax Act, 1961, after he has already assessed the income of the assessee and passed the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such percentage of the value of the asset as so claimed or by more than such amount as may be prescribed in this behalf; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do, and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clauses (ha) and (i) of sub-section (1) and sub-sections (3A) and (4) of section 23, sub-section (5) of section 247 section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall with the necessary modifications, apply in relation to such reference as they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment order. If counsel for the Revenue wants to suggest that even after the assessment order has been passed by the Assessing Officer, by way of an academic exercise or to satisfy himself that he correctly determined the value of the property while computing the total income, he referred the matter for valuation, we are afraid, he is wrong. The entire exercise of reference to the Valuation Officer for ascertaining the fair market value of the capital assets of an assessee is for the purposes of computation of income from capital gains and for completion of the assessment order and once that has been done, the Assessing Officer has no competence to refer to the Valuation Officer. In our view, therefore, the reference made by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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