TMI Blog1983 (12) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... hnammal for her life and thereafter to her sons and daughters equally and the sons and daughters of her predeceased sons and daughters to get the properties per stirpes holding the same absolutely. For the assessment year 1976-77 for which the valuation date is 31-3-1976, the share of the remaindermen shown at Rs. 2,57,500 in the case of Shri V. Jayaraman and Rs. 5,15,000 in the case of Shri V. Rajendran were accepted by the WTO in his orders dated 26-3-1981. Subsequently, the DVO valued such interest at Rs. 4,75,028 in respect of Shri V. Jayaraman and at Rs. 9,50,000 in the case of Shri V. Rajendran. In the light of the departmental valuation of the interest of the remaindermen, the Commissioner considered that the orders passed by the WTO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the remaindermen who are the grandsons of late Shri G.D. Naidu. That is how the valuation was made by the DVO on 14-10-1982 determining the value of Shri V. Jayaraman at Rs. 4,75,028 and Shri V. Rajendran at Rs. 9,50,000. His main contention was that the revised valuation as per the DVO's report was not before the WTO and did not form part of his records on the basis of which the Commissioner could revise his orders. Relying on the decision of the Calcutta High Court in the case of Ganga Properties v. ITO [1979] 118 ITR 447 at page 452, he vehemently contended that the materials which came into existence after the assessment was made could not form part of the record of assessment for the purpose of revision under section 25(2) and several ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of invoking revision under section 25(2). The Tribunal, Bombay Bench 'B, in the case of PQR, HUF v. First WTO [WT Appeal Nos. 215 to 219 (Bom.) of 1981, dated 12-5-1981] has held that the valuation report obtained after the assessment could not be relied upon by the Commissioner for exercising revisionary jurisdiction under section 25(2) and the Board's circular on obtaining report from the Valuation Officer for properties of over Rs. 5 lakhs value affects judicial aspects of the Act and is beyond the Act and, therefore, not binding on the WTO. The omission to follow the Board's circular in such circumstances, could not be the basis for treating the order of the WTO as prejudicial or erroneous in terms of section 25(2). In the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has a house property in which the mother has life interest. The value of the property is equal to life interest and being less than Rs. 1 lakh ignored." This shows that the WTO had applied his mind regarding the value of the property and also the value of the life interest of the life tenant. In this connection, it is relevant to point out that the DVO's report obtained subsequent to the regular assessment made by the WTO could not be treated as 'information' within the meaning of section 17(1)(b) of the Act as per the judgment of the Supreme Court in D.R. Chawla, WTO v. Ramdas Kilachand [SLP (Civil) No. 5663 of 1980, dated 30-3-1983] filed by the department against the judgment of the Bombay High Court dated 10-1-1980 whereby t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting to take into account any evidence which was relevant or taking into account any evidence which was irrelevant and ignoring any evidence on the record. It was also not a case of the WTO making order in haste or mala fide so as to constitute the orders by him as erroneous in law and in fact. 8. In view of the aforesaid decisions, we hold that the Commissioner was not justified in exercising his jurisdiction under section 25(2) and, consequently, setting aside the assessments holding that they were erroneous insofar as they were prejudicial to the interests of the revenue. In this view of the matter, therefore, we set aside the orders passed by the Commissioner and consequently, restore the orders passed by the WTO. 9. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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