M/S. INDERCHAND BISHAMBAR DAYAL & ANOTHER Vs. THE VALUATION OFFICER, INCOME TAX DEPTT. & ANOTHER

JUDGEMENT

(1.) The petitioner No. 1, a Hindu Undivided Family, is an assessee under the Wealth Tax Act, 1957 (hereinafter referred to as the 'Act'. The petitioner No. 2, is the Karta of the petitioner No. 1. The petitioner No. 1 submitted the return of Wealth for the assessment years 1977-78 to 1985-86 stating therein the value of house property at Tinsukia. The respondent No. 2, the Wealth Tax Officer not being satisfied with the value of the building shown in the return, made a reference to the Valuation Officer, income Tax Department, Dibrugarh, the Respondent No. 1, under Sec. 16A(1) of the Wealth Tax Act on 19.11.85 for determination of the fair market value of the petitioner's property.

(2.) After the reference was made, the respondent No. 1 by notice dated 3.12.85 asked the petitioner to furnish with numerous information and detail particulars of the property and the petitioner furnished all the particulars. The respondent No. 1 after necessary enquiry, determined the fair market value of the property as per cent capitalisation method for the purpose of assessment of Wealth Tax since building was let out to the tenants. The respondent No. 1 submitted the valuation report to the Assessing Officer, namely. Wealth Tax Officer, on 2.6.86, a copy of which is annexed to the petitioner as Annexure-IV. The Wealth Tax Officer after receipt of the valuation report completed the assessment of the Wealth Tax for the year 1977-78 to 1985-86 by the assessment order dated 19.6.86.

(3.) Although the assessment of Wealth Tax was completed and the order of assessment passed on 19.6.86, respondent No. 1 the Valuation Officer, however, served impugned notice dated 2.7.86 (Annexure-VI) to the petitioner as follows: