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TMI Blog1983 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... was included the value of a house owned by the assessee at College Road, Ludhiana. This value was taken at Rs. 71,917. For this house, the value had been declared by the assessee at Rs. 98,513 in the immediately preceding assessment year. The WTO, therefore, asked the assessee to explain the discrepancy. The assessee explained that some portion of the land appurtenant to the house was proposed to be acquired by the Government leading to fall in the fair market value of the house. The WTO did not accept this contention. He took the value of the house at Rs. 1,10,000 as against Rs. 71,917 declared. 3. The value of this house declared by the assessee at Rs. 71,917 was not by a mere estimate but was based upon a registered valuer's report dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny mandatory provisions of law which he had failed to comply. It was further contended that whether the WTO should or should not make a reference to the Valuation Officer is a matter of his discretion. This discretion could not be interfered with by the AAC in the manner done by him. Therefore, the order of the AAC is unjustified. His order may be set aside and he be directed to dispose of the appeal on merits. 6. Opposing these submissions, the revenue, relying upon the decision of the Supreme Court in the case of Kapurchand Shrimal v. CIT [1981] 131 ITR 451, contended that an appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeal and to issue, if necessary, appropriate direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is whether, on the facts and in the circumstances of the case, the AAC has the powers to direct the WTO to invoke the provisions of section 16A for making a reference to the Valuation Officer about the value of an asset when the value of such asset the WTO had considered for purpose of inclusion into the net wealth during the course of assessment which is under appeal before him. For the determination of this issue, we have to keep in focus the provisions of section 16A(1) which is as under : " For the purpose of making an assessment (including an assessment in respect of any assessment year commencing before the date of coming into force of this section) under this Act, the Wealth-tax Officer may refer the valuation of any asset to a Valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the prescribed rules of the law and discretio specialis is where the laws have given no certain rule and discretion is the absolute judge of the cause and gives the rule. It is thus clear that discretion is to be exercised by the one who is either entitled or empowered to do an act. The discretion vested with the WTO was his sole domain and no interference from any quarter therein could be accepted because if the discretion were to be subjected to the fiat of another, it would cease to be discretion of the one in whom it was vested. 8. In the case before us the WTO considered the value of the house shown by the assessee at Rs. 71,917. However, he did not accept this value. Rightly or wrongly he exercised his discretion and incre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the WTO to use his discretion under section 16A in the manner required by the AAC. Therefore, the directions issued by the AAC in this regard are without any legal authority and as such void. 11. Since the directions are not valid and the WTO cannot carry them out in view of the above position, we are of the opinion that the AAC erred in issuing the directions and in setting aside the assessment. We set aside his order and restore the entire appeal back to his file with the directions that the AAC should dispose it of on merits in accordance with law after affording reasonable opportunity of being heard to both the sides. 12. Before we close, we would like to clarify a contention by the revenue. The revenue argued before us that in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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