TMI Blog2005 (5) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer to record such other relevant circumstances on the basis of which he forms such opinion in order to refer the matter to the valuation cell under the said clause. The hon ble Rajasthan High Court in the case of CIT v. Hotel Joshi [ 1999 (11) TMI 56 - RAJASTHAN HIGH COURT] , has held that for invoking sub-clause (ii) of clause (b) of section 55A the Assessing Officer is required to form an opinion on the basis of the material on record that reference to the District Valuation Officer for ascertaining the fair market value of the asset is necessary having regard to the nature of the asset and other relevant circumstances. It is also necessary to record as to why it is necessary to adopt such a course. Nothing has been shown to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciates, dated March 1, 1996 who worked out the value at Rs. 24,36,400 as on April 1, 1981. The Assessing Officer however referred the matter to the valuation cell of the Income-tax Department who worked out the value at Rs. 15.74 lakhs as on April 1, 1981. One appeal has been filed against the report of the departmental valuer under section 55A of the Income-tax Act, read with the provisions of the Wealth tax Act. The other appeal has been filed against the assessment under section 143(3) in which the long-term capital gain has been calculated on the basis of the report of the departmental valuer. One common ground in both the appeals taken by the assessee is that reference made to the valuation made by the Assessing Officer was beyond the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , stating the relevant circumstances on the basis of which he forms such opinion. He also referred to the decisions of the hon ble Rajasthan High Court in the case of CIT v. Hotel Joshi reported in [2000] 242 ITR 478 and the decision of the hon ble Gujarat High Court in the case of M. V. Shah, Official Liquidator, Anant Mills Ltd. v. U. J. Matain reported in [1994] 209 ITR 568. 5. On the other hand the learned Departmental Representative Shri B. R. Uitsey, pleaded with the help of case law, as the Assessing Officer was competent to make the references under section 55A. 6. After hearing both the parties and pursuing the case law we are of the opinion that the matter before us to be adjudicated is not as to whether the Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer for ascertaining the fair market value of the asset is necessary having regard to the nature of the asset and other relevant circumstances. It is also necessary to record as to why it is necessary to adopt such a course. 7. Nothing has been shown to us by the Revenue to state that the reference was made under clause 55A(a) or 55A(b)(ii) and if it was made under section 55A(b)(ii) then what circumstances were in existence on the basis of which the Assessing Officer had formed his opinion to make such reference. In the absence of the same we hold that the reference made to the Valuation Officer was invalid. 8. Since we are deciding the legal issue in favour of the assessee we do not find any need to go into the merits of the case and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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