Law:

Section:

Section 16a of the wealth-tax act, 1957-Reference to valuation officer-Whether section 16a can be invoked only for purpose of making assessment and this assessment excludes proceedings where assessment is complete and such assessment has also been reopened under section 17-Held, yes Facts For the assessment year 1969-70, the assessee filed on 29-6-1970 wealth-tax return in the manner prescribed, declaring her net wealth at Rs. 1,64,631 as on the valuation date 1-4-1969. This included the value of certain properties, inter alia,at Jaipur held jointly by her and her sister in equal shares. Those were valued by the registered valuer. As per his valuation certificate and a detailed valuation report, certain show rooms in Jaipur were valued at the rate of Rs. 1,84,000 and the assessee's share was determined at the rate of Rs. 92,000 which was duly returned by the assessee along with other items of wealth. After a conscious and intelligent application of mind, the WTO accepted, inter alia, the returned value of Rs. 92,000 in the assessment framed on 21-12-1971. It subsequently transpired that the departmental Valuation Officer valued the said property at Jaipur at the rate of Rs. 4,11,000 as on 1-4-1974 wherein the assessee's half share worked out at Rs. 2,05,000. On that basis, the WTO estimated the value of the property and assessee's half share at the rate of Rs. 1,95,000, as on the valuation date 1-4-1969, and initiated on 4-3-1978 reassessment proceeding under section 17 to reassess the alleged escaped wealth of Rs. 1,03,000 for the assessment year 1969-70. In writ, the assessee challenged the reassessment proceedings as the conditions precedent for taking such action were non-existent and that approved valuer's reports were accepted after due consideration, discussion and application of mind. The assessee contended, inter alia, (i) that section 16A could be invoked only for the purpose of making assessment and this assessment could include the reassessment proceedings also after the same had already been initiated but excluded the proceedings where the assessment was complete and such assessment had also been reopened under section 17; and (ii ) that the WTO…

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