Laxmi Devi Jain v. Wealth-Tax Officer And Another.

B.P Jeevan Reddy, C.J:— Validity of a reference to the Valuation Officer under sub-section (1) of section 16A of the Wealth-tax Act is challenged in this case. The assessment years concerned herein are 1969-70, 1975-76, 1977-78 and 1978-79. The writ petition was occasioned by a notice issued by the Valuation Officer on June 16, 1980, stating that valuation of the property known as “Agarwal Building” situated on plots Nos. 4, 5, 6 and Survey No. 419/1, The Mall, Kanpur, has been referred to him by the Wealth-tax Officer under section 16A(1) of the Act for determining the fair market value of the assets as on March 31, 1969, to March 31, 1978, except March 31, 1973.

2. The petitioner's case is that, on the said date, no reassessment proceedings were pending with respect to any of the four assessment years. It is submitted that she had filed returns for the first two assessment years and that assessment proceedings were completed prior to June 10, 1980, the date on which reference to the Valuation Officer was made under section 16A(1). It is further submitted that, with respect to the other two assessment years, no returns were filed by the assessee and no proceedings for assessment or reassessment were also pending on the-relevant date, viz., June 10, 1980. It is submitted that reference can be made under section 16A(1) only where a proceeding for assessment or reassessment is pending and not in a case where no such proceedings are pending. An identical contention has been upheld by us in Civil Miscellaneous Writ Petition No. 622 of 1980, V.K Jain v. WTO, [1992] 193 ITR 89 (All) decided on February 6, 1991. Following the said judgment, we allow this writ petition as well. We may state that the basic facts stated above are not disputed in the counter-affidavit.

3. The writ petition is allowed. No costs.

4. It is made clear that this order does not preclude the Wealth-tax Officer from making such reference if any assessment or reassessment proceedings are pending with respect to any assessment year.