9911796707
TMI Blog1994 (5) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner did not submit a return under section 14 of the Wealth-tax Act, 1957 (hereinafter "the Act", for short). The Assessing Officer, respondent No. 2, issued annexure 'A' notice to the petitioner under section 14(4)(i) of the Act requiring him to submit a return. By the Taxation Laws (Amendment) Act, 1972, section 16A has been inserted which provides for reference of the valuation of an asset to a Valuation Officer. The Assessing Officer referred the valuation in this case to the third respondent, Valuation Officer. The third respondent issued annexure 'C' notice to the petitioner requiring him to furnish necessary records and to allow inspection of property. The petitioner, therefore, filed the writ petition challenging the consti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 20 states that the value of any asset other than cash, being an asset which is not covered by rules 3 to 19, shall be estimated to be the price which, in the opinion of the Assessing Officer, it would fetch if sold in the open market on the valuation date. Various decisions of the Supreme Court and the High Courts have thrown further light on the manner and method of valuation of assets under the rules. Sub-section (1) of section 16A reads thus: " 16A.(1) For the purpose of making an assessment (including an assessment in respect of any assessment year commencing before the date of coming into force of this section) under this Act, where under the provisions of section 7 read with the rules made under this Act or, as the case may be, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luation Officer is required to pass an order estimating the value of the asset and send a copy of the order to the Assessing Officer and to the assessee. Sub-section (6) requires the Assessing Officer to complete the assessment in conformity with the estimate of the Valuation Officer. Learned counsel for the petitioner has invited our attention to Chapter VII-B of the Act dealing with registered valuers. Any assessee who is entitled to or required to attend before any wealth-tax authority or the Appellate Tribunal in connection with any matter relating to valuation of any asset, except where he is required under the Act to attend in person, may attend by a registered valuer. That is to say, the Act provides for the registered valuer to as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the provisions of the Act and the Rules in Schedule III. Rule 1 states that the value of any asset shall be determined in the manner laid down by the rules. Rules 3 to 20 lay down the manner of valuation. The Valuation Officer who is required to discharge functions under section 16A should necessarily follow the rules in Schedule III. Therefore, the contention that there are no norms to guide the Valuation Officer is unsustainable. The provision is not challenged on any other ground. We hold that section 16A is not ultra vires the Constitution. The next submission made on behalf of the petitioner relates to annexure "A" notice issued by the Assessing Officer and annexure 'C' notice issued by the Valuation Officer. By annexure 'A', ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f whose net wealth on the valuation date exceeded the maximum amount which is not chargeable to wealth-tax, shall, on or before the due date, furnish a return of his net wealth in the prescribed form and verified in the prescribed manner. Section 15 deals with return after due date and amendment of return. Section 16(4)(i) reads as under: " 16(4). For the purposes of making an assessment under this Act, the Assessing Officer may serve, on any person who has made a return under section 14 or section 15 or in whose case the time allowed under sub-section (1) of section 14 for furnishing the return has expired, a notice requiring him, on a date to be specified therein-- (i) where such person has not made a return within the time allowed un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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