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[2010] 186 Taxman 352 (Uttaranchal)/[2009] 311 ITR 8 (Uttaranchal) [2010] 186 TAXMAN 352 (UTTARAKHAND) HIGH COURT OF UTTARAKHAND Commissioner of Income-tax v. Bhawani Shankar Vyas* PRAFULLA C. PANT AND SUDHANSHU DHULIA, JJ. IT APPEAL NOS. 125 TO 127, 131, 153, 156 AND 158 OF 2007 NOVEMBER 18, 2008 Section 142A, read with section 145, of the Income-tax Act, 1961 - Assessment - Estimate by Valuation Officer in certain cases - Assessment year 1998-99 - Whether it is mandatory for Assessing Officer to reject books of account first before making reference under section 131 or calling for a report of valuer under section 142A - Held, no - Whether where Assessing Officer, while making assessment, had doubts on correctness of accounts submitted by assessee, he was perfectly justified in making a reference to departmental valuer without formally or categorically rejecting books of account submitted by assessee - Held, yes FACTS The assessee, a proprietor of two concerns, had filed return of income for relevant assessment year. The Assessing Officer issued a notice under section 143(3) to him asking for certain details in respect of assets shown in the balance sheet. Thereafter, the Assessing Officer referred the matter to the valuation cell. The Valuation Officer valued the property at higher price than the valuation shown by the assessee. The Assessing Officer passed assessment order on the basis of valuation report. On appeal, the Commissioner (Appeals) reduced such valuation by 15 per cent. On second appeal, the Tribunal held that it was wrong on the part of the Assessing Officer to have straightaway made a reference to the Departmental Valuation Officer without rejecting the report and books of account of the assessee. The Tribunal also held that the books of account and valuation reports submitted by the assessee were proper and the Assessing Officer as well as the Commissioner (Appeals) erred in not relying upon them. On appeal to the High Court: HELD The findings of the Tribunal on a pure question of fact are not liable to be interfered with by the High Court, if it is seen that the Tribunal had examined all the available evidences produced before it by the…

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