Assessment u/s 16A of the Wealth tax Act, 1957. - Income Tax - 1537/CBDT

INSTRUCTION NO. 1537/CBDT Dated: November 18, 1983 Section(s) Referred: 16A Statute: Wealth Tax Act, 1957 Section 16A of the Wealth tax Act, 1957 provides that the Wealth-tax Officer may, for the purpose of making an assessment, refer the valuation of any asset to a Valuation Officer, if the conditions laid down under sub-clause (1)(a) or (1)(b) are satisfied. In the above referred judgement, the Calcutta High Court has held that a valid reference under section 16A(1) of the Wealth tax Act can be made only in respect of and for the purpose of completing a pending assessment under the Act. The High Court has relied on the judgements of the Rajasthan High Court in the case of Brig. B.Lall Vs. W.T.O. (1981) 127 ITR 308 and that of the Madhya Pradesh High Court in the case of Onkarji Kastur Chand Vs. WTO (1982) 135 ITR, 188. 2. In view of these judicial pronouncements which have been accepted in principle by the Board, the Board desire that Wealth tax Officers should make references under section 16A(1) in respect of those assessment years only in respect of which assessment proceedings may be pending before them. Otherwise a reference to the Valuation Cell can be made on a non-statutory basis only. 3. These instructions may be brought to the notice of all officers working in your charge.