COMMISSIONER OF WEALTH TAX Vs. V CLEETUS

JUDGEMENT

(1.) THE matter arises under the WT Act, hereinafter referred to as "the Act". Short question that arises for consideration is whether the order passed by the Valuation Officer in a reference made under s. 16A can be taken as information in the possession of the WTO so as to enable him to initiate action under s. 17(1)(b) of the Act.

(2.) BARE facts necessary to appreciate the above issue are as follows : The assessee filed return for the asst. yr. 1976-77 under the Act, supported by valuation given by registered valuer. The WTO was of the opinion that the value so returned is less than its fair market value and so referred the matter to the Valuation Officer under s. 16A of the Act. But before the Valuation Officer sent a copy of his order to the WTO, he passed an order of assessment on the value returned by the assessee. Thereafter when the WTO received the order passed by the Valuation Officer in the reference made to him under s. 16A, notice under s. 17(1)(b) was issued for reassessment. After hearing the assessee, the WTO completed the reassessment. Assessee took up the matter in appeal before the AAC, without success. Thereupon the assessee preferred an appeal before the Tribunal. Tribunal allowed the appeal and took the view that the order of the Valuation Officer was invalid. Tribunal took the view :