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TMI Blog2023 (3) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the Finance Act, 2017 u/s 132(9B) - Tribunal noted that neither the DVO filed the valuation report pursuant to the AO s reference dated 22nd January, 2016 nor the DVO filed the valuation report pursuant to the reference by the CIT(A) through the AO by letter dated 29th January, 2019. Thus, the learned Tribunal noted that the addition has been made only on the basis of the initial valuation report dated 18th November, 2014, which was pursuant to the DDIT s reference and on the said date he had no power to call for such report.Tribunal is fully justified and the order does not call for any interference - Decided against revenue. - ITAT/35/2023 IA No: GA/2/2023 - - - Dated:- 27-2-2023 - THE HON BLE JUSTICE T.S. SIVAGNANAM AND THE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a reference made by the DDIT(Investigation), dated 11th July, 2014, was within jurisdiction. The learned Tribunal, in our view, rightly took note of the decision of the Hon ble Supreme Court in Smt. Amiya Bala Paul Vs. CIT 262 ITR 407 (SC) and held that the DDIT did not have the power to make the reference to the DVO, which power he acquired only on 1st April, 2017 by virtue of the Finance Act, 2017 under Section 132(9B) of the Act. Further, the learned Tribunal noted that neither the DVO filed the valuation report pursuant to the Assessing Officer s reference dated 22nd January, 2016 nor the DVO filed the valuation report pursuant to the reference by the CIT(A) through the Assessing Officer by letter dated 29th January, 2019. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts in that case which is re-produced as under: The assessee built a house in a suburb of Kolkata between the years 1981 to 1983. She filed a return in respect of the assessment year 1982 -1983 in which she disclosed that she had invested an amount of Rs.1,75,000 in the construction of the house. The return was accepted by the Income Tax Officer (now known as the Assessing Officer). In respect of the subsequent assessment year, namely 1983-84, the assessee disclosed that she had invested a further amount of Rs 1,70,000 in the construction of the house. This was not accepted by the Assessing Officer, who referred the question of the construction cost of the house to the Valuation Officer under Section 55(A) of the Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act to ask for a Valuation Report from the Valuation Officer. It was held that each of these sections were enabling machinery provisions which invested ample powers in the Assessing Authority , and that any wrong mention of the provision on the requisition memo would not be material. Accordingly the question referred was answered in the affirmative and against the assessee. In the appeal before us, it was contended on behalf of the assessee that a reference to a Valuation Officer could only be made strictly in terms of section 55 A of the Act and that if the circumstances justifying the reference under that Section were not prevailing, the Assessing Officer did not have the jurisdiction to otherwise refer the matter to the Valuatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a vis power of Civil Court under the code of Civil Procedure, 1908, section 76 to 78 of Code of Civil Procedure held that - From this it is clear that whenever reference to a Valuation Officer appointed under the Wealth Tax Act is permissible under the Income Tax Act, it has been statutorily so provided. Apart from the aforesaid, a Valuation Officer is appointed under the Wealth Tax Act and can discharge functions within the statutory limits under which he is appointed. It is not open to a Valuation Officer to act in his capacity as Valuation Officer otherwise than in discharge of his statutory functions. He cannot be called upon nor would he have the jurisdiction to give a report to the Assessing Officer under the Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air market value of the property in the manner provided under that section and submit a report of the estimate to the said officer within a period of sixty days from the date of receipt of such reference. 18. Thus, from the aforesaid legislative history it can be noted that the authorized officer of the search DDIT (Inv.)/ADIT (Inv.) has been empowered to make reference to the Valuation Officer only after 01.04.2017 and not before that date. Here in this case, admittedly the search has taken place on 13.03.2014 and on a perusal of the valuation report dated 18.12.2014, it is noted that the reference to the Valuation Officer was given by DDIT (Inv.) dated 11.07.2014. Thus, we find that when the reference to the Valuation Officer was ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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