9911796707
TMI Blog1982 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... Co., Government approved valuer. In the light of the report, the value shown for the earlier years in the original returns filed by the assessee, was suitably enhanced for the assessment years 1965-66, 1966-67 and 1967-68 to Rs. 4,78,000, Rs. 6,00,000 and Rs. 7,34,000, respectively, by filing the revised returns. The WTO after going through the valuation report submitted by the assessee, accepted the valuation of the immovable properties as shown by the assessee for all the five years under consideration. 3. Subsequently, the WTO got these properties valued by a departmental valuer. The departmental Valuation Officer has, by his report dated 1-12-1979, valued these properties for each of the years under consideration at a substantially h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders of the assessment by the WTO to be erroneous and prejudicial to the interests of the revenue. For this purpose, Sri S.E. Dastur, the learned counsel for the assessee, has strongly relied on the decision of the Calcutta High Court in the case of Ganga Properties v. ITO [1979] 118 ITR 447. In particular, he urged that the WTO did not have the jurisdiction to call for the valuation report and that the Commissioner could not, in law, take into account the said report for the purpose of assuming jurisdiction under section 25(2) of the Wealth-tax Act, 1957 ("the Act"). Inviting our attention to the decision of the Punjab and Haryana High Court in the case of CIT v. R.K. Mittal Works [1978], it is submitted that it is necessary for assuming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as justified in coming to the conclusion that the orders of assessment passed by the WTO without following the aforesaid instructions were erroneous and prejudicial to the interests of the revenue. 7. In reply, Sri S.E. Dastur has referred to the provisions of section 16A of the Act to show that the circular referred to by the departmental representative goes beyond the provisions of the section and is, therefore, invalid. Reliance in this behalf has been placed on the decision of the Madras High Court in the case of A.L.A. Firm v. CIT [1976] 102 ITR 622 for the proposition that any instruction issued by the department cannot legally extend to the judicial aspects of the administration of the Act. 8. We have heard the parties and have g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular affects the judicial aspects of the administration of the Act as distinct from the administrative aspects. Therefore, following the decision of the Madras High Court in the case of A.L.A. Firm, we would hold that the said circular was not binding on the WTO in this regard and the Commissioner would not be justified in holding the orders of assessment to be erroneous and prejudicial to the interest of the revenue on the ground that the WTO completed the assessments without following the direction contained in the said circular. 9. Having regard to the above discussion, we hold that the order of the Commissioner cannot be sustained. The same is set aside. In the result, the appeals are allowed. - - TaxTMI - TMITax - Wealth tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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