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TMI Blog2005 (2) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT The judgment of the court was delivered by G.S. Singhvi J.- Whether the Income-tax Appellate Tribunal (Delhi Bench "SMC-I" Delhi) (for short, "the Tribunal") was justified in deleting the additions made by the Assessing Officer on account of difference between the cost of construction shown by the assessee and the one assessed by the Departmental Valuation Officer is the question of which determination has been sought by the appellant in this appeal filed under section 260A of the Income-tax Act, 1961 (for short, "the Act"). For the assessment year 1993-94, the respondent filed a return declaring an income of Rs. 27,660. By an order dated March 31, 1995, the Assessing Officer completed the assessment under section 143(1)(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luded the alleged unexplained investment in the property amounting to Rs. 1,65,984. The Commissioner of Income-tax (Appeals), Rohtak (for short, "the CIT(A)"), allowed the appeal filed by the respondent and deleted the addition of Rs. 1,65,984 made by the Assessing Officer. However, he maintained some other additions made by the Assessing Officer. Feeling dissatisfied with the order of the Commissioner of Income-tax (Appeals), the respondent filed further appeal before the Tribunal. He filed another appeal against the order passed in relation to the assessment year 1994-95. The Tribunal relied on the judgment of the Supreme Court in Smt. Amiya Bala Paul v. CIT [2003] 262 ITR 407 and declared that the Assessing Officer did not have the jur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment or reassessment under this Act, where an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or section 69B is required to be made, the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him. (2) The Valuation Officer to whom a reference is made under sub-section (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957). (3) On receipt of the report from the Valuation Officer, the Assessing Officer may, after giving the assessee an opportunity of being heard, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions and answered the same in the negative. The relevant extracts of that judgment read as under: "In an assessment of the assessee to income-tax, the Assessing Officer cannot refer to the Valuation Officer the question of the cost of construction of a house property built by the assessee : section 55A of the Income-tax Act, 1961, can have no application to such a matter. The power of the Assessing Officer under sections 131(1) and 133(6) is distinct from and does not include the power to refer a matter to the Valuation Officer under section 55A. A report of the Valuation Officer under section 55A may be considered by the Assessing Officer as a piece of evidence if it is relevant. However, the power of inquiry granted to an Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 55A or to a competent authority under section 269L. In a reference under section 16A of the Wealth-tax Act, 1957, the entire process of enquiry is solely conducted by the Valuation Officer alone whose responsibility is to arrive at a correct valuation of the asset. The inquiry of the Valuation Officer is distinct from the power of the Assessing Officer who is otherwise invested with the power of enquiry into the actual wealth of the assessee under that Act. The Assessing Officer's power to enquire under sections 37(1) and 38 is distinct from his power to refer to the Valuation Officer under section 16A : there is no overlapping." In view of the above discussion, we hold that no question of law, much less a substantial question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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