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2013 (10) TMI 1026 - HC - Income TaxApplication of section 292B of the Income Tax Act – Applicability of section 50C when no capital gains liable to tax - Reference to valuation officer u/s 142A without rejection of books of accounts - Held that:- As noticed earlier, the conduct of the third respondent in calling for particulars relating to valuation of the plant would show that he did not accept the books of account of the petitioner filed in the initial assessment proceedings and this by implication amounts to rejection. It cannot, therefore, be said that the third respondent or the Revenue was acting according to their whims and fancies. Section 292B of the Act enacts no assessment, notice, summons or other proceedings taken by the authorities under the Act shall be invalid by reason of any mistake, defect or omission if such notice or proceedings or assessment is otherwise valid under the Act. This provision enacts the principle that mere non-mention or mention of a wrong provision of law in a proceeding or order cannot be a ground to invalidate it if that is otherwise permissible and valid under law. Reliance has been placed upon the judgment in the case of CIT v. Bhawani Shankar Vyas [ 2008 (11) TMI 154 - UTTARKHAND HIGH COURT], wherein it was held that rejection of books of account is not a precondition for enquiring into the valuation of an investment for the purpose of reassessment under section 142A(1) - The Division Bench of the Uttarakhand High Court ultimately concluded that full powers have been given by section 142A of the Act to the Assessing Officer and it was not necessary for him to first reject the books of account of the assessee – Decided against the assessee.
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