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TMI Blog1983 (3) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... cum-flat Nos. 87-88, Sector 17D, Chandigarh. The half share was Rs. 3,37,593 on the basis of the report of registered valuer. On the basis of the above returns original assessment was completed on a net wealth of Rs. 3,25,097 vide order dt. 24th October, 1977. In this assessment the WTO after due consideration accepted the assessee's share in the above property on the basis of the above mentioned valuer's report. 3. The assessee had sold half share of shop-cum-flat property mentioned above to her son Shri Inderjit Singh. The Competent Authority initiated acquisition proceedings under the IT Act, 1961 and in the process of these proceedings, a reference was made to the Valuation Officer for valuing this property. The Valuation Officer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of the Hon'ble Gujarat High Court in the case of Sakaralal Balabhai vs. ITO Anr. (1975) 100 ITR 97 (Guj) it was submitted that the report of the valuer for purposes of initiation of proceedings u/s 17 (1)(b) would constitute 'information' and as such action taken by the WTO was justified. Support was also derived from the Punjab and Haryana High Court judgment (Full Bench) in the case of Jindal Strips Ltd. vs. ITO Anr. (1979) 10 CTR (P H) 103 : (1979) 116 ITR 825 (P H) (FB). 5. However, opposing these submissions very strongly the ld. Counsel for the assessee submitted that the ITAT in ITA Nos. 156 and 157 of 1976-77 dt. 22nd October 1977 in the case of Dr. Jagdish Chander had held that the WTO could not assume power u/s 17 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire scheme of amendments which associated the Valuation Officer with the valuation of assets at the stage of assessment to wealth-tax and put fetters and limitations on the authority of the WTOs in making their own valuations after they had referred it to the Valuation Officer during the pendency of an assessment or reassessment. The opening phrase "for the purpose of making an assessment" in section 16A (1) and the phrase "proceed to complete the assessment in conformity with the order under sub-s.(3) or sub-s. (5) of the Valuation Officer" in sub-s. (6) of s. 16A shows that the pendency of an assessment including a reassessment is a sine qua non for the giving of jurisdiction to the WTO to make a reference under s. 16A. Section 16A ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in this case for reopening the assessment. The Competent Authority had called for the report and was apparently satisfied about the value of the property shown by the assessee and the acquisition proceedings were dropped. On the same valuation report the WTO has reopened the assessment u/s 17 (1) (b) despite the fact that at the time of original assessment proceedings, the registered valuer's report was before him and he had enough time to ponder over and verify whether such a report represented true and correct value of the property or not. The WTO was, therefore, merely using the Valuation Officer's report in the acqisition proceedings as a pretence to reopen the assessment because such a report could not constitute 'information' withi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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