TMI Blog1984 (3) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... n report, however, the assessment was completed by the ITO. The main point that has been urged on behalf of the petitioner is that the valuation proceeding has become infructuous in view of the completion of the assessment (before receipt of report) and, as such, is liable to be quashed. Dr. Debi Prasad Pal, appearing on behalf of the petitioner, has drawn my attention to the terms of s. 55A of the I.T. Act. He has argued that, in the first place, before referring any particular case for valuation, the, ITO has to form an opinion that one of the circumstances as mentioned in s. 55A of the I.T. Act exists and (a reference) should be made. As far as the present case of reference for valuation is concerned, the petitioner has challenged th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless such condition or prerequisite has been fulfilled. In the instant case, the reference to the Valuation Officer could be made only when the ITO concerned " was of opinion" that having regard to the nature of the asset and other relevant circumstances, it was necessary to do so. From the letter subsequently issued making the reference, it appears that the ITO did not form any independent opinion of his own but in referring the matter to the Department's valuer under s. 55A of the I.T. Act, he was merely carrying out the directions of some other officer. In that context, it has been contended by Dr. Pal that the entire reference is void ab initio and, further, the proceeding arising out of such reference is liable to be quashed at least ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT v. Ranchhoddas Karsondas [1959] 36 ITR 569 (SC), to show that an assessee is entitled to file his return any time before his assessment, provided there is no time-limit. Their Lordships of the Supreme Court while deciding that case observed that even a return filed on the last day could not be ignored on the ground that the Department would be driven to complete the assessment proceeding within a few hours or lose the right to send a notice under s. 34(1). The argument of inconvenience was held to be not a decisive argument and there were means and methods which could be availed of by the Department to save the bar of limitation from becoming operative. It was further pointed out by their Lordships of the Supreme Court that it was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinguishable on facts inasmuch as all those cases referred to valuation after completion of the assessment and, as such, can have no application to the facts of the present case. In fact, it was repeated that the ITO was compelled to complete the assessment to avoid the same getting time-barred. Reliance was also placed on the decision in the case of Satyendra Chunder Ghosh v. WTO [1980] 126 ITR 102 (Cal), where it was held by B. C. Basak J. that in the case of a completed assessment, which was not reopened, the WTO was not entitled to make a reference under s, 16A of the W.T. Act. It has been urged that although the aforesaid case was distinguishable on facts, yet the principle laid down therein applies on all fours to the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for which alone a valuation report can be utilised, namely, for completion of the assessment in conformity with the valuation report is no longer existent, the assessment having been completed in the meantime. In such circumstances, to allow the assailed valuation proceeding to continue, would militate against well-known canons of strict construction of taxing statutes. The rule is, therefore, made absolute and the impugned proceedings is quashed by a writ of certiorari. Let a writ of mandamus also issue directing the respondents to forbear from proceeding any further with, or making any valuation under or pursuant to, the impugned reference. There will be, however, no order as to costs. On the prayer of Mr. Mitra, appearing on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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