Law: Wealth Tax Act, 1957

Section: 16A,35, ScheduleIII

(a) Wealth tax-----Valuation property---Reference to Valuation Officer----Valuation requested for a number of assessment years---Completion of assessment for one of assessment years before valuation report was received---Valuation was not invalidated---Indian Wealth Tax Act, 1957, S. 16A. Section 16A of the Wealth Tax Act, 1957, provides for reference by the Assessing Officer to the Valuation Officer. That section does not provide that the Valuation Officer shall not proceed with the valuation if the assessment is completed before the valuation is completed. Section 16A(6) of the Act no doubt provides that the assessment shall be completed in accordance with the valuation made by the Valuation Officer. That provision, however, cannot be read as imposing an embargo on the completion of the assessment, till such time as the valuer submits his report. Delay on the part of the valuer cannot have the effect of deterring the Assessing Officer from proceeding to complete the assessment, and allow the proceedings to be barred by limitation. It is open to the; Assessing Officer to invoke section 35 of the Act after the valuation report is received to correct the value stated in the assessment order in conformity with the valuation made by the Valuation Officer. The reference on the "record" in section 3 5 of the Act would include the report of the Valuation Officer when it is received by the Assessing Officer and is made to form part of the record of assessment. That report being the result of a reference made in the course of the assessment proceedings, the report submitted by the valuer would legitimately be a part of the record. The Wealth Tax Officer having felt the need for a valuation report wrote to the Valuation Officer under section 16A of the Wealth Tax Act on November 26, 1989. As the report had not been received even by March 26, 1990, he completed the assessment for the assessment year 1985-86 and he estimated the value of the property under consideration, at Rs.40 lakhs. Reference made to the valuer was not only for the assessment year 1985-86, but also for subsequent assessment years including the assessment year 1988-89. The valuer submitted his report…

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