Ajit K.Sengupta, J. - (1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1984-85 to 1986-87, the following common questions of law have been referred to this court: "(1) Whether the Income-tax Appellate Tribunal was justified in remanding the matter to the Assistant Commissioner of Wealth-tax to enable the Assistant Commissioner of Wealth-tax to make a reference to the Valuation Officer under Section 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."
(2.) 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 Direct Taxes contained in Circular No. 332A dated March 31, 1982 (see [1982] 135 ITR (St.) 11).
(3.) On appeal to the Commissioner of Wealth-tax (Appeals), it was pointed out that the said instructions are contrary to the well-recognised and well-settled principles of valuation as laid down by the Supreme Court. It was further pointed out that, in case the Assessing Officer wanted to reject the valuation as shown by the assessee, it was mandatory on him to make a reference to the Valuation Officer under Section 16A of the Wealth-tax Act. It was further submitted that once the Assessing Officer has not exercised the option to make a reference under Section 16A at all till the completion of the assessment, the same cannot be done at the appeal stage.;