TMI Blog1999 (8) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... as taken resort to the provisions of section 55A of the Act also. It is stated that this section is not attracted to the facts of this case. It is stated that the income of the assessee has already been assessed. It is urged that the assessees are not transferring the property and, therefore, the question of making the assessment in terms of section 55A does not arise. It is further urged that this section would apply only if the assessee sells his property. The fact that section 55A comes in Chapter 4 and sub (sic) deal with the capital gains, is sought to be projected in this regard. It is stated that as section 55A is part of that set of sections which deals with capital gains, this section can be resorted to only if the question for det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Officer.-With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the Assessing Officer may refer the valuation of capital asset to a Valuation Officer- (a)in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the Assessing Officer is of opinion that the value so claimed is less than its fair market value; (b)in any other case, if the Assessing Officer is of opinion- (i)that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such percentage of the value of the asset as so claimed or by more than such amount as may be prescribed in this behalf; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and inspection, search and seizure, requisitioning books and documents, calling for information, etc., are set out in sections 131 to 135. An overview of these provisions leads to the following conclusions, which are supported by judicial decisions cited under the appropriate sections: (a)Proceedings under the Act are always against an individual or other assessable entity. That individual or entity may not actually be assessed but may be suspected to have assessable income. (b)Powers, e.g., under section 131(1), are to be exercised for the purposes of this Act . Therefore, such powers are to be exercised for the purpose of proceedings in particular cases as set out in (a) above. (c)The power to call for information which wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to relate to a class of persons . 5. I am of the opinion that the above conclusions drawn by the learned authors summarise the powers vested in the officers mentioned in section 131. A perusal of the provision indicated at Sl. No. (a) makes it apparent that the powers can be exercised even if an individual or entity may not actually be assessed but may be suspected to have assessable income. Thus, in case of a person who has raised a construction which runs into lacs but has not disclosed his income, the officer named in section 131 can examine the matter and can exercise powers in terms of section 131. Therefore, to say that the power could not be exercised under section 131 because the income of the assessee stood assessed or that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same meaning as is given to the expression in section 2(r) of the Wealth-tax Act of 1957. This is so provided in section 55A, Explanation. For facility of reference, this is reproduced below: In this section, Valuation Officer has the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957). 9. Therefore, a Valuation Officer is an officer known to law. If a notice is given by him, then it is a valid notice. A Valuation Officer is supposed to comply with the principles of natural justice. This is because his assessment would affect civil rights. Therefore, if the Valuation Officer had given a notice, he was only complying with the principles of natural justice. If the petitioners do not wish to assoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termining the issue of capital gains but for all other purposes. This would be the value of capital asset as defined in section 2(14) of the Act; (v)that a Valuation Officer exercises judicial power, therefore, he is required to issue a notice. The exercise of this power on the part of Valuation Officer who is a creation of statute and who has issued the notices for assessing capital gains, is an exercise of power which is valid. 11. As a matter of fact, this aspect of the matter has been considered by a Division Bench of this Court in ITO v. Prem Hotel [2000] 109 Taxman 357 , wherein it has been observed that the ITO is well within its rights to pass an order in terms of section 131(1), sub-clauses (a), (b), (c ) and (d) and appoint ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
