Law: Income Tax Act, 1961

Section: 131,133,133(6),142,142(2),55,55A,256,256 (2)

(a) Income-tax---Assessment---Powers of Assessing Officer---Cost of construction of house--Assessing Authority competent to' call for report from Valuation Officer under Ss-131, 133(6) & 142(2)---Indian Income Tax Act, 1961, Ss. 131, 133(6) & 142(2)---Indian Civil Procedure Code, 1908, S.75. Taxing statutes have two kinds of provisions, one is the charging provision and the other is the machinery provisions. They are to be construed differently. A charging section has to be strictly interpreted irrespective of the consequences, whereas the machinery provisions are not to be so strictly interpreted, but they are broadly to be utilised to provide a machinery to achieve the purpose of the Act or to effectuate the charging provisions of the Act. Sections 131, 133 and 142 of the Income Tax Act, 1961, are machinery provisions which vest ample powers in the assessing authority. A perusal of section 131 makes it clear that the income-tax authorities while exercising various jurisdictions under the Act enjoy the power of a Civil Court as provided in the Code of Civil Procedure, 1908, for certain purposes including for issue of commissions. Section 75 of the Civil Procedure Code empowers the Court trying a suit to issue commissions for certain purposes, clause (e) of section 75 of the Civil Procedure Code, provides that the Court can issue commission for holding scientific, technical or expert investigation. The function of the valuer of a property is a technical function requiring expert investigation for the purpose of estimating the cost of any building. The report of a valuer, if sought for estimating the cost of a construction would only be the opinion of an expert on technical matter. Therefore, it would be open to the assessing authority to seek expert opinion about the cost of construction of a building which can broadly be termed as issuing commission for the purpose. The assessing authority will be quite competent to call for the report on the valuation of the cost of construction from the Valuation Officer in view of the provisions under sections 131, 133(6) and 142(2). The assessee constructed a house property in the assessment years 1982-83 and…

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