Law: Income Tax Act, 1961

Section: 256(1)

Law: Wealth Tax Act, 1957

Section: 16A,4(1),3A

Law: Wealth Tax Rules, 1957

Section: 2,8A

Wealth tax--- ----Valuation of assets---Valuation of assets of firm---Firm owning different assets---Valuation to be made by different appropriate valuers---Indian Wealth Tax Act, 1957, Ss.7 & 16 A---Indian Wealth Tax Rules, 1957, R. 8-A. Section 7 (1) of the Indian Wealth Tax Act, 1957, provides the mode of valuation of assets. Section 16-A lays down that, for purposes of making an assessment under this Act, the Assessing Officer may refer the valuation of any asset to -a Valuation Officer. Rule 8-A of the Wealth Tax Rules, 1957, prescribes the qualifications of registered valuers. The qualifications prescribed for each category of valuers are different. Separate qualifications are prescribed precisely because a valuer who is equipped and qualified to value a particular type of asset may not be equipped and qualified to value another type of asset to wit, a valuer of immovable property may not be competent to value mines, quarries or, for that matter, stocks, shares, debentures, etc., or works of art and jewellery. Where a firm owns land and buildings, plant and machinery and other business assets including goodwill and if the Wealth Tax Officer is of the opinion that all of them should be valued by a valuer, the matter must be referred to three valuers. The valuation of land and buildings should be referred to the valuer of immovable properties referred to in sub-rule (2) of rule g-A. The valuation of plant and machinery must be referred to the valuer of plant and machinery referred to in the said rule 8-A and valuation of other business assets and goodwill must be referred to the valuer of stock, shares, debentures, etc., including shares in partnership firms mentioned in sub-rule (7). But this does not mean that the Wealth Tax Officer is bound to refer every asset owned by a partnership firm to the appropriate Valuation Officer. The question of reference to the Valuation Officer arises only where the Wealth-tax Officer is satisfied within the meaning of section 16-A (1) that a reference to a Valuation Officer is necessary. CWT v. Ram Saran Kajriwal (1987) 168 ITR 485 (All.); CWT v. Sri Ram Narain Garg (1988) UPTC 30 (All.) and Seth Satish Kumar Modi v.…

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