- (1.) THE petitioner in this case has challenged a proceeding arising out of a reference u/s 55a of the Income-tax Act. The above reference was made by the Income-tax: officer for valuation of a property sold by the petitioner resulting in less which was incorporated in the income-tax return filed by the petitioner. Before such sale the petitioner got the property valued through its own valuer. The reference was made on or about 12. 12. 75 when the assessment was still pending. Prior to receipt of th valuation report, however, assessment was completed by the Income-tax Officer.
(2.) THE main point that has been urged on behalf of the petitioner is that the valuation proceeding has become infructuous in view of the completion of the assessment and, as such, is liable to be quashed.
(3.) DR. Debi Prasad Pal, appearing on behalf of the petitioner, has drawn my attention to the terms of section 55a of the income tax Act. He has argued that, in the first place, before referring any particular case for valuation the Income-tax officer has to form an opinion that one of the circumstances as mentioned in section 55a of the Income-tax Act exists and should be made. As far as the present case of reference for valuation is concerned, the petitioner has challenged the same as not bona fide. It is alleged that the same has been made to carry out a fishing and rolling investigation for finding out materials for reopening or revising a completed assessment. It may be patient to note in this connection that in course of the hearing, the letter of the Income-tax Officer referring the matter to the valuer dated 12. 12. 75 was produced before along with the records relating to the valuation proceeding and in compliance with my desire a true copy of the said letter has also been placed on the records of the present case by the learned counsel representing the Department. It has been submitted by Dr. Pal that the letter of reference does not indicate compliance with the pre-condition of section 55a of the Income-tax Act. It clearly shows that the necessary reference was made in compliance with a direction given to the income-tax Officer without formation of any independent opinion by him as is required by the terms of the said section 55a.;