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TMI Blog1990 (12) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee's property is to be computed after exclusion of reversionary value of land ? (2) Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the question of valuation was not referred to the proper valuer and directing the Wealth-tax Officer to refer the valuation again to the competent valuer to determine the assessee's share in the firm and not to go by the valuation made by the Valuation Officer who had valued the assets of the firm ?" In respect of the assessment years 1977-78 and 1979-80 too, the very two questions are referred separately. It is stated by learned counsel for the Revenue that the first question has to be answered against the Revenue and in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares should be valued in accordance with the provisions of rule 2 of the Wealth-tax Rules and if a reference is to be made under section 16A, reference should be to the Valuation Officer specifically appointed for the valuation of shares in a partnership firm. Aggrieved by the decision of the Commissioner of Income-tax (Appeals), both the assessee and the Revenue filed appeals before the Income-tax Appellate Tribunal. The Tribunal observed in its judgment that there are different Valuation Officers for valuing land and buildings and other assets and for valuing shares in partnership firms. list of such valuers is provided in Notification No. S. O. 1699 dated March 13, 1974. The present is a case of valuation of shares in partnership firms. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has to follow. Section 16A provides that, for the purpose of making an assessment under this Act, the Assessing Officer may refer the valuation of any asset to a Valuation Officer, if he is of the opinion that the value as returned by the assessee is less than its fair market value and in some other situations which it is not necessary to set out in detail. Sub-sections (2) to (5) prescribe the procedure which the Valuation Officer should follow in determining the value of the assets. Sub-section (6) says that, on receipt of the report of the Valuation Officer, the Assessing Officer should proceed to complete the assessment in conformity with the valuation report of the Valuation Officer so far as the valuation of assets referred to him i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while those mentioned in sub-rules (8) to (11) are those mentioned hereinafter), (vii) valuers of machinery and plant, (viii) valuers of jewellery, (ix) valuers of works of art, and (x) valuers of life interest, reversions and interest in expectancy, vide sub-rules (2) to (11) respectively. Different qualifications are prescribed for each of the said categories of valuers. While it is not necessary to mention those qualifications, it is sufficient to mention that qualifications appropriate to the work expected of them are prescribed. Now, coming back to the facts of the case, the appellate authority has said that, while valuing the share of the assessee in the partnership firms aforesaid, reference ought to have been made to the valuer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f business assets, including goodwill but excluding those referred to in sub-rules (2) to (6) and (8) to ( 11 ) ". The same are found repeated in the circular aforementioned. The argument of learned standing counsel for the Revenue was that the words " but excluding those referred to in sub-rules (2) to (6) and (8) to (11)" qualify all the preceding expressions, namely, stocks, shares, debentures, securities, shares in partnership firms and business assets, including goodwill, whereas the contention of learned counsel for the assessee was that the said words qualify only the last of the assets, namely, "Business assets including goodwill". The contention of the Revenue is that where a partnership firm owns land and buildings, plant and mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular type of asset may not be equipped and qualified to value another type of asset, to wit, a valuer of immovable property may not be competent to value mines, quarries or, for that matter, stocks, shares, debentures, etc., or works of art and jewellery. But this does not mean that the Wealth-tax Officer is bound to refer every asset owned by a partnership firm to the appropriate Valuation Officer. The question of reference to the Valuation Officer arises only where he is satisfied within the meaning of section 16A(1) that a reference to a Valuation Officer is necessary. Take for example, a partnership firm which owns lands and buildings, machinery and plant and other business assets including goodwill. The Wealth-tax Officer may think th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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