TMI Blog2010 (7) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Tribunal was not justified in holding that in case of incomplete construction, the reference to the DVO was premature – Held that:- According to sub-section (3), the Assessing Officer on receipt of report from the Valuation Officer may take the same into consideration while making assessment or reassessment after providing an opportunity of being heard to the assessee. However, a proviso has been added, according to which this section shall not apply in respect of an assessment made on or before September 30, 2004, where such assessment has become final and conclusive on or before that date except in cases where a reassessment is required to be made in accordance with the provisions of section 153A. Section 142A of the Act is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 194 (SC). Accordingly, we answer the said question in favour of the assessee and against the Revenue. 3. We have heard the learned counsel for the parties on question No. 1. 4. Briefly the facts may be noticed. The assessee is a private limited com- pany and filed return on October 30, 1984, for the assessment year 1984-85 declaring an income of Rs. 1,04,490. The assessee raised certain construc- tion in the factory building and the Assessing Officer referred the matter to the Valuation Cell. The Departmental Valuation Officer (in short "the DVO") estimated the cost of construction at Rs. 8,89,540. The assessee also got the services of a registered valuer who estimated the cost at Rs.4,56,900 but the Assessing Officer adopted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gopala Konar's case [1977] 109 ITR 52 (Mad) was distinguishable as the issue considered therein was different. Learned counsel for the Revenue has sought to draw support from the insertion of section 142A in the Act, with effect from November 15, 1972. 7. On the other hand, learned counsel for the assessee submitted that the case related to the assessment year 1984-85 during which period there was no specific provision on the basis of which reference could be made to the DVO. According to him, the reference made by the Assessing Officer to the DVO could be said to be one under section 55A of the Income-tax Act, 1961 (in short "the Act"). According to the learned counsel, as there was no provision on the basis of which reference could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 2004, with effect from November 15, 1972, which reads thus : "142A. Estimate by Valuation Officer in certain cases.-(1) For the purposes of making an assessment or reassessment under this Act, where an estimate of the value of any investment referred to in sec- tion 69 or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or section 69B is required to be made, the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him. (2) The Valuation Officer to whom a reference is made under sub-section (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng heard to the assessee. However, a proviso has been added, according to which this section shall not apply in respect of an assessment made on or before September 30, 2004, where such assessment has become final and conclusive on or before that date except in cases where a reassessment is required to be made in accordance with the provisions of section 153A. The amendment is inserted retrospec- tively from November 15, 1972. 11. The question regarding the applicability of section 142A of the Act was a subject-matter of consideration before this court in Krishan Lal Dua's case [2005] 277 ITR 477 (P H) wherein the assessment had become final on March 31, 1995, and the same was not liable to reassessment under section 153A of the Act, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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