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Section 55A of the Income-tax Act, 1961 - Capital gains - Reference to Valuation Officer - Assessment year 2002-03 - Whether once Assessing Officer has determined value of capital assets of assessee and completed assessment, he cannot, thereafter, refer matter to Valuation Officer under section 55A for determining fair market value of said asset - Held, yes F.V. Irani and Jitendra Jain for the Petitioner. D.S. Chopra for the Respondent. JUDGMENT R.M. Lodha, J. - The writ petition raises an interesting question. The question is : Is Assessing Officer competent to seek valuation of the property under section 55A of the Income-tax Act after he has already assessed the income of the assessee and passed assessment order. 2. We, accordingly, issue rule and dispose of the same at this stage by consent of the counsel for parties. 3. The notice dated 19-4-2005 issued under section 55A of the Income-tax Act, 1961 is under challenge in the writ petition. 4. That in respect of assessment year 2002-03, the Assessing Officer passed an assessment order under section 143(3) on 24-3-2005 is not in dispute. After having passed an assessment order, he has sought valuation of the property 'land located at Suren Road, Plot bearing CTS Nos. 221 to 227, 229 to 233, 236, 237, 244 and 245, village Gundavali Andheri(E), Mumbai 93'. 5. The Assessing Officer in the assessment order applied the formula for valuation of the aforestated property as on 1-4-1981 by dividing the value at which the property was sold by 7.5. According to him, the value of the property as on 1-4-1981 was 7.5 time lesser than the value at which it was sold. 6. Section 55A of the Income-tax Act, 1961 reads thus : "55A. Reference to Valuation Officer. - With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the Assessing Officer may refer the valuation of capital asset to a Valuation Officer- (a)an a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the Assessing Officer is of opinion that the value so claimed is less than its fair market value; (b)in any other case, if the Assessing Officer…

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