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TMI Blog1977 (10) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... did not constitute information within the meaning of s. 17(1)(b)of the WT Act, hereinafter referred as the Act. The reduction of taxable wealth by Rs. 52,000 in each of the two years is thereby contested. 2. We propose to deal with the question of the reopening of the assessments under s. 17(1)(b) first because if we are to agree with the AAC that the reopening was bad in the case, no other controversy shall survive for our consideration in the present appeals. 3. Original assessments were completed on 10th Nov., 1972 and 19th May, 1973 under s. 16(3) for the two years under appeal respectively. While framing the said assessments, the WTO involved himself with the valuation of the residential house of the respondent, namely 148/2, Lab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oposed by the Valuation Officer, but we are not addressing ourselves to that aspect of the case. The first question for our consideration is whether a valid reference in the first place can be made under s. 16A of the Act after framing an assessment under s. 16(3) in which assessment the valuation of a property is considered and analysed and accepted on the basis of the material placed on record like that of a registered valuer's report. 7. For the Revenue, Shri R.R. Gupta contended that the reference purported to be made under s. 16A on 16th Feb., 1974 was valid. Shri Gupta invited our attention to s. 2(ca) and submitted that since the assessment include reassessment a reference under s. 16A cannot only be made for the purpose of framin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or knowledge derived from external sources concerning facts or particulars or as to law relating to a matter bearing on the assessment. In that case, the question involved was whether the report of the valuer for the purposes of WT assessment would constitute 'information' for the purpose of s. 147(b) and the Gujarat High Court held that it would constitute 'information'. Therefore, the central question would be as to whether there was a report of the type mentioned in the cited judgment and when we say 'a report', it must be valid legal accepted report and not an opinion which, in the first place, could not be legally obtained. 9. We like to refer to the Supreme Court judgment in the case of CIT vs. Bhanji Lavji (1971 79 ITR 582 (SC)), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted. In the case of WTA No. 209 of this Bench, the fats were material different. In that case, the WTO after framing the assessment on 22nd Nov., 1973 which waild indicate that even while framing the assessment on 22nd Nov., 1973 started enquiries about the valuation of a plot on 24th Nov., 1973 he was aware that he did not have proper facts and, therefore, the WTO did two things : First to obtain a report from his Inspector and then on the basis of that report made a reference to the Valuation Officer before resorting to reopening. Therefore, that case stands on its own legs and the Revenue can derive no support as far as the reassessments in the present case are concerned. On the contrary, in para 8 of our order in WTA No. 209, as noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the original assessments, the registered valuer's opinion was accepted after analysation, the Valuation Officer's opinion could not constitute the type of information which could entitle the WTO to reopen proceedings under s. 17(1)(b). While deciding these appeals, we have in focus the definition of the term 'assessment' as given under s. 2(ca) and are of the firm view that the reassessment has been used in the context that when an assessment has been legally reopened for reassessment either under s. 17(1)(a) or 17(1)(b), an officer an validly make a reference under s. 16A even when while framing the original assessments he had not though it fit to make such reference. Holding that the WTO wrongly assumed powers for reassessments under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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