TMI Blog1991 (1) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... on 16A of the Wealth-tax Act ? (2) Whether the Income-tax Appellate Tribunal is empowered under the provisions of the Wealth-tax Act to extend the time limit prescribed for completion of the assessment by remanding the matter to the Assistant Commissioner of Wealth-tax to make a reference under section 16A of the Wealth-tax Act, 1957 ?" Shortly stated, the facts are that the assessee, inter alia, held 19,997 shares of Jaipur Finance and Diary Products Pvt. Ltd. In the wealth-tax return, the assessee declared the value of these shares at Rs. 111.06 per share on the basis of a registered valuer's report. The Assessing Officer estimated the value at Rs. 106.62 (sic) per share allegedly following the instructions of the Central Board of Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Diary Products P. Ltd. to the Valuation Officer under section 16A of the Wealth-tax Act. The Income-tax Appellate Tribunal has thus allegedly extended the time-limit for completion of the assessment as prescribed under section 17A of the Wealth-tax Act. Hence, this reference. At the hearing before us, it has been contended on behalf of the assessee drawing our attention to a decision of the Madhya Pradesh High Court in M. V. Kibe v. CWT [1987] 168 ITR 82, that the appellate authorities cannot direct the Assessing Officer who is also a quasi-judicial Officer to exercise his discretion in a particular manner. By that process, the proceeding court be allowed to be reopened to give an extended period of limitation (sic). In M. V. Kibe [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immovable property. Similarly, he did not accept the valuation of the shares of Jaipur Finance and Diary Products Pvt. Ltd. on the basis of the valuation made by the registered valuer. He proceeded to value the shares on the basis of a circular of the Board. The assessee, being aggrieved, contended before the Commissioner of Wealth-tax (Appeals) as well as before the Tribunal that the Wealth-tax Officer was not justified in making an estimate of the valuation of the immovable property and in valuing the unquoted shares of Jaipur Finance and Diary Products Pvt. Ltd. in terms of the circular of the Board. In disposing of the appeal, it was necessary for the Tribunal to determine the correct valuation of the immovable property and the shares. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal to interfere with the discretion exercised by the lower authorities and substitute it by its own discretion. It is also open to the Tribunal to direct the authority to exercise its discretion where failure of such authority to exercise such discretion may result in an improper assessment. As in the instant case, the Wealth-tax Officer, although differing from the valuation of the registered valuer, did not refer the case to the Valuation Officer which he ought to have done in the facts and circumstances of the case. We think, in the circumstances, the Tribunal was right. We have not been able to persuade ourselves to hold that the appellate authority cannot direct the subordinate authority to exercise its discretion vested in such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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