TMI Blog1978 (12) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... argued that after completion of the assessment, the ITO had himself no jurisdiction to call for this information from the assessee and since this could not be directly done, the Valuation Officer, whose function was that of an expert, could not in an indirect manner call for this information under the advice of the ITO. On behalf of the revenue, Mr. D. N. Awasthy has relied on the provisions of ss. 55A and 133(6) of the I. T. Act. The last-mentioned section lays down that an ITO for the purposes of taking action under the Act may require any person to furnish information in relation to such points or matters as, in his opinion, would be useful for or relevant to any proceedings under the Act. The precise submission of Mr. Awasthy is that the ITO is charged with the duty of framing assessment against the assessees and since the word "assessment" includes rectification of an assessment and reassessment, under s. 147 of the Act, it is open to the said officer either to call for this information directly from the assessee or to authorise the Valuation Officer to collect the same from the assessee under the advice conveyed by him. The learned counsel for the parties agree that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the Valuation Officer requiring the company to produce vouchers of the expenses incurred in the construction of the mill for the relevant period and certain other information for revaluing the same. At that stage, by its reply (annexure P-7), the company objected to the authority of the Valuation Officer to ask for the abovesaid information on the ground that the assessment proceedings for the years 1972-73, 1973-74 and 1974-75 being complete, there was no occasion for the company to comply with the demand of the Valuation Officer. Since he insisted upon compliance with the directions contained in the two letters mentioned above, the company filed the present writ petition challenging the authority of the ITO to seek the assistance of the Valuation Officer in exercise of his powers under s. 55A of the Act. Before proceeding further, it may be mentioned that the proceedings for the assessment year 1975-76 concluded during the pendency of this writ petition. Learned counsel for the company made a passing reference to the assessment order but did not consider it necessary, for the decision of the writ petition, to place a copy thereof on record. The department's case is that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee by more than such percentage of the value of the assets as so claimed or by more than such amount as may be prescribed in this behalf; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do, ....... " Emphasis has been laid on the words "for the purposes of this Chapter" used in s. 55A. This section occurs in Chap. IV of the Act which is in the following parts : "A-Salaries (ss. 15 to 17), B-Interest on securities (ss. 18 to 21), C-Income from house property (ss. 22 to 27), D-Profits and gains of business or profession (ss. 28 to 44D), E-Capital gains (ss. 45 to 55A), F-Income from other sources (ss. 56 to 59)." The contention of the learned counsel for the company further is that s. 55A is exclusively meant for Part " E " of Chap. IV dealing with "capital gains". The other provisions of the Act having bearing upon the contention of the learned counsel for the company are discussed hereinafter. Section 2(14) of the Act lays down : " 'Capital asset' means property of any kind held by an assessee, whether or not connected with his business or profession ......." The definition excludes certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein the words "under this Chapter" occur, has relevance to any transaction other than "capital gains". For the foregoing reasons, it seems difficult to overrule the contention of the learned counsel for the company that s. 55A of the Act does not in terms apply to the facts and circumstances of this case. With respect to the powers of the ITO, learned counsel for the department places strong reliance on s. 133(6) of the Act laying down: " The Income-tax Officer, the Appellate Assistant Commissioner or the Inspecting Assistant Commissioner may, for the purposes of this Act-... (6) require any person, including a banking company or any officer thereof to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the Income-tax Officer, the Appellate Assistant Commissioner or the Inspecting Assistant Commissioner, giving information in relation to such points or matters as, in the opinion of the Income-tax Officer, the Appellate Assistant Commissioner or the Inspecting Assistant Commissioner, will be useful for, or relevant to, any proceeding under this Act." It has not been disputed befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entirely seized of the matter needs no emphasis. In the nature of things, the report of the Valuation Officer would not bind the ITO and the company can have its say in the matter. Mentioning of s. 55A of the I.T. Act in letter, annexure P-2, by the ITO to the Valuation Officer, is of no consequence, in that, when the proceedings are otherwise in accordance with law, mentioning of a wrong section will not vitiate them. The other aspect of the matter referred to by the learned counsel for the department is that the information sought for by the Valuation Officer from the company is in the interest of the latter. Learned counsel further stresses that the ITO has been quite fair to the company in not launching proceedings under s. 147 of the Act straightaway. Instead, he has chosen a very fair course to associate the company in ascertaining the value of the mill and it may be that if the company furnishes the required information the need for reopening the assessments starting from 1972-73 may not arise. In view of the discussion above, the question formulated, in the beginning of the judgment, is answered in the affirmative. The writ petition fails and the same is hereby dismi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
