TMI Blog2000 (1) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal itself had observed at para 3 of its order that, according to the Income-tax Officer, the cost of the investment was low and, therefore, the case was referred to the Depart-mental Valuation Officer, Gauhati ? 2. The respondent, Smt. Basana Rani Saha, is the assessee. The matter pertains to the assessment years 1972-73 and 1973-74. The facts in brief are that the assessee during the accounting year 1971-72 had constructed a building at Station Road, Karimganj Town, with plinth area of 5,875 sq. ft. The building in question is being used as a hotel, viz., Gouri Hotel. The disclosed cost of construction of the building was ₹ 1,28,290. The ITO having found the cost of construction not satisfactory, referred the matter to the Departmental Valuation Officer for valuation. The Departmental Valuation Officer assessed the value thereof at ₹ 1,92,350. Thus, a difference of ₹ 54,160 (sic) (Rs. 1,92,350 - ₹ 1,28,290) was segregated into two parts of ₹ 27,000 each and added to the income for the assessment years 1972-73 and 1973-74 under the provisions of section 69 of the Income-tax Act, 1961 ( the Act ). 3. The assessee preferred an appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation Officer in view of the provisions under sections 131, 133(6) and 142(2) of the Act. Before we prefer to refer to the relevant observation made therein, we would like to quote hereinbelow the relevant provisions of the Act for better appreciation of the controversy at hand. 8. Sections 55A, 131(1), 133(6) and section 142(2) of the Act which are relevant for the purpose at hand are quoted below : 55A. Reference to Valuation 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 the 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 Income-tax Officer is of opinion that the value so claimed is less than its fair market value; (b) in any other case, if the Income-tax 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 ..... on the strict interpretation of charging sections only. The machinery sections being collateral for the purpose of effectuating the charging provisions have to be interpreted in tune with the object of the taxing provisions, i.e., the charging sections. Therefore, the sections which provide for the enforcement of the charging provisions are to be constructed liberally. 10. Insofar as the provisions of sub-section (6) of section 133 are concerned, it cannot be disputed that the assessing authority has the powers to require any person to give information in relation to such points or matters which in his opinion will be useful for value and proof in any enquiry or proceeding under the Act. We have no doubt that the words any person used in this sub-section would also include a Valuation Officer. This Court in Income-tax Reference No. 6 of 1996 decided on 25-8-1999 - Smt. Amiya Bala Paul s case (supra), also expressed this view. The decision in CIT v. Taj Mahal Hotel [1971] 82 ITR 44 (SC), relied upon in the said case lends support to the view that the expression any person in its larger meaning would include a Valuation Officer. 11. Section 142(2) also shows that the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon Jindal Strips Ltd. v. ITO [1979] 116 ITR 825 (Punj. Har.) (FB) at page 830, for the purpose of definition of the word person used under section 133(6) of the Act. It is a Full Bench decision of the Punjab and Haryana High Court. It has been held that section 55A of the Act applies to matters relating to capital gains only. It will be necessary to briefly see the facts of the case and the propositions of law as laid down. The expenses incurred in construction of a mill in its premises were not properly valued in the previous year. In the reassessment proceedings the assessing authority called for the report of the Departmental Valuation Officer under section 55A. On an objection raised against the said report, it has been held that the assessing authority, in the reassessment proceeding, could invoke section 133(6) of the Act for revaluation of the property. Section 133(6) of the Act applies to any proceedings under the Act. Mere mention of a wrong section in the requisition sent to the Valuation Officer, viz., section 55A, will not vitiate the report. It is held that the valuation report could be called under section 133(6) of the Act to evaluate the cost of construction, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 131 of the Income-tax Act, section 75 of the Civil Procedure Code, comes in the aid of the income-tax authorities while carrying on their functions under the provisions of the Act. It will have the same nature as that of machinery provision, namely, to aid and facilitate the levy, quantification of the tax liability under the charging provision of the Act. . . . In our view, nothing jurisdictional is involved about it and the two decisions relied upon on behalf of the assessee themselves amply clarify the legal position. In the case of Hotel Amar [1993] 200 ITR 785 (Orissa), it has been held that a reference cannot be made to the Valuation Officer under section 55A of the Act in reassessment proceedings, but at the same time it was held that a report obtained under section 55A can be used as a piece of evidence which would be rebuttable. Similarly, in the case of Jindal Strips Ltd. [1979] 116 ITR 825 , a Full Bench of the Punjab and Haryana High Court though has held that section 55A of the Act applied to matters relating to capital gains only, but in reassessment proceedings the assessing authority is competent to call for the report of the Valuation Officer und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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