9911796707
TMI Blog1986 (7) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... f the properties in respect of final plot No. 330 was done by the Rent Capitalization Method following the procedure laid down by Circular No. 3 of the Wealth-tax Act, 1957. The circular was given statutory recognition subsequently by introduction of rule 1BB in the Wealth-tax Rules, 1957. The Wealth-tax Officer issued a notice under section 16(2) of the Wealth-tax Act to the petitioner for the assessment years 1975-76 to 1978-79 and an assessment order under section 16(5) of the Act for the assessment year 1975-76 was passed valuing the immovable properties at Rs. 3,30,000. Against that order, the petitioner preferred an appeal to the Appellate Assistant Commissioner of Wealth-tax, and in the appeal, the valuation of the property was red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds the applicability of rule 1BB of the Wealth-tax Rules, the assessee may take up the matter with the Wealth-tax Officer directly and he may consider the same at the appropriate time. Feeling aggrieved by this attitude of the Valuation Officer, the petitioner has filed the present petition under article 226 of the Constitution of India in this court on June 18, 1982. Shri Pandit, learned counsel appearing on behalf of the petitioner, submitted that the assessments for the years 1975-76 to 1977-78 were already finalised by the assessment orders passed by the Wealth-tax Officer and, therefore, the Wealth-tax Officer had no jurisdiction to refer the valuation of the properties for those assessment years to the Valuation Officer. The submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h-tax Act and unless and until the Wealth-tax Officer forms such an opinion and the formation of such opinion is demonstrated before the court, the reference cannot be sustained. It is not possible to accept the submission of the learned counsel. A plain reading of the provisions of section 16A makes it clear that before the assessment is finalised, if the Wealth-tax Officer is of the opinion, having regard to the nature of the assets and other relevant circumstances, that it is necessary to refer the valuation of any assets to the Valuation Officer, then it is permissible for him to do so. What the section prescribes is a subjective satisfaction of the Wealth-tax Officer and the formation of the opinion by the Officer would depend upon sev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not bother about the applicability of the rule nor would he take into consideration the principle laid down therein and the assessee may complain about the same before the Wealth-tax Officer is wholly incorrect. Indeed, section 16A of the Wealth-tax Act prescribes that the Wealth-tax Officer would be bound to accept the report made by the Valuation Officer. The Valuation Officer thus is duty bound under the Act and the Rules to value the property in accordance with the procedure prescribed and it is futile to claim that the Valuation Officer should ignore the applicability of rule 1BB of the Wealth-tax Rules. The Valuation Officer shall take into consideration the applicability of rule 1BB and carry out the work of valuation in accordance w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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