- (1.) THE Income Tax Appellate Tribunal, Allahabad has referred the following question of law under section 27(1) of the Wealth -Tax Act, 1957 ('the Act') for opinion to this Court. '1. Whether on the facts and in the circumstances of the case, the I.T.A.T. was correct in law in holding that the question of valuation was not referred to the proper valuer and directing the W.T.O. to refer the valuation again to the competent valuer, to determine the assessee's share in the firm and not to go by valuation made by the Valuation Officer who had valued the assets of the firm ?
(2.) WHETHER in law and on facts of the case, the Tribunal was justified in allowing exemption to a partner of a firm under section 5(1)(iv) of the Wealth -Tax Act, 1957 in respect of property owned by the firm ?' 2. The reference relates to the assessment year 1979 -80. Briefly stated the facts giving rise to the present reference are as follows: The respondent assessees are partners in the firm M/s. Sadi Ram Ganga Prasad. The Wealth -Tax Officer made a reference to the Departmental Valuation Officer under section 16A of the Act to value land, building, plant and machinery belonging to the above firm. After obtaining the valuation report, the Wealth -Tax Officer completed the assessments of the assessee in accordance with the valuation report of the Departmental Valuation Officer.
(3.) BEING aggrieved by the orders of the Wealth -Tax Officer, the assessees preferred appeal 'to the Appellate Assistant Commissioner. It was contended before the Appellate Assistant Commissioner that the matter relating to the valuation should have been referred to the Authorised Valuation Officer for the purpose and not to the Valuation Officer appointed for valuation of land and building. Agreeing with the contention of the assessee, the Appellate Assistant Commissioner set aside the assessment orders on the point to be framed afresh af ter ref erring the valuation of the assessees'share in the partnership firm to the Authorised Valuation Officer having jurisdiction for the purpose.;