KISHORE BALA V. UNION OF INDIA AND ORS.

CWP/13451/1993

AI Insights

The case involves Mrs. Kishore Bala, the petitioner, who challenged the actions of the Assessing Officer under the Income Tax Act, 1961, including a show-cause notice, referral to a departmental Valuation Officer, and subsequent assessment orders. The petitioner argued that the Assessing Officer was not empowered to initiate a valuation inquiry from the departmental Valuation Officer. The respondents, represented by Mr. Tejinder K. Joshi, contended that the assessment order was appealable and could be contested before the Appellate Authority. The court decided that the issues raised by the petitioner were appropriate for appellate consideration and dismissed the writ petition, allowing the petitioner to pursue an appeal.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 684465 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 31-08-2013
• Assessment Year: misc
• Other Referred Cases: Amiya Bala Paul Versus Commissioner of Income Tax, Shillong AIR 2003 SC 2702
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: ARUN SHARMA
• Assessee Lawyers: SUPRIYA GARG
• Keywords: Appealable order; Assessment Order; Certiorari; Certiorari; Departmental Valuation Officer; Valuation Officer
• Section: 1961

Judgement Text

"C.W.P. No.13451 of 1993 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.W.P. No.13451 of 1993. Date of Decision:-31.08.2013. Mrs. Kishore Bala. .........Petitioner. Versus Union of India and others .........Respondents. CORAM: Hon'ble Mr. Justice Rajive Bhalla Hon'ble Mr. Justice Dr. Bharat Bhushan Parsoon. ***** Present:- Ms. Supriya Garg, Advocate for Mr. Akshay Bhan, Advocate for the petitioner. Mr. Arun Sharma, Advocate for Mr. Tejinder K. Joshi, Advocate for the respondents. Rajive Bhalla, J (Oral) By way of this order, we shall dispose of CWP Nos.13451 and 13452 of 1993 as they involve adjudication of the same questions of fact and law. The petitioners in these writ petitions, have approached this Court for issuance of a writ in the nature of certiorari quashing the show- cause notice, the order referring the matter to a departmental Valuation Officer, the report prepared by the Valuation Officer and the assessment Yag Dutt 2013.09.05 15:33 I attest to the accuracy and integrity of this document C.W.P. No.13451 of 1993 -2- order passed in respect thereof (Annexures P-1 to P-11). Counsel for the petitioner submits that as the Assessing Officer is not empowered by any statutory provision of the Income Tax Act, 1961 (for short, referred to as 'the 1961 Act') to call for an inquiry with respect to valuation of property, from the departmental Valuation Officer, the impugned proceedings, the assessment order as well as the order imposing penalty (Annexures P-1 to P-11) may be quashed. Counsel for the petitioner relies upon a judgment of Hon'ble Supreme Court in Amiya Bala Paul Versus Commissioner of Income Tax, Shillong AIR 2003 SC 2702. Counsel appearing for Mr. Tejinder K. Joshi, Advocate for the revenue, submits that as the impugned assessment order is appealable and the petitioners can validly raise pleas either of fact or of law before the Appellate Authority, the writ petition is misconceived and should, therefore, be dismissed. We have heard counsel for the parties, perused the paper book as well as documents appended therewith, and are of the firm opinion that the controversy raised in the writ petition can be validly raised before the Appellate Authority. The petitioner's contention that the Assessing Officer has no power to call for a report from the departmental Valuation Officer and by placing reliance thereon, pass an assessment order, can be validly urged before the Appellate Authority. We find no legal impediment in the path of petitioner raising such a plea whether based upon fact or of law or upon the cited judgment of Hon'ble Supreme Court, before the Appellate Yag Dutt 2013.09.05 15:33 I attest to the accuracy and integrity of this document C.W.P. No.13451 of 1993 -3- Authority. We would, at this stage, like to record that the question whether the report prepared by the departmental Valuation Officer is binding upon the Assessing Officer or a mere piece of evidence, is a matter to be raised before and decided by the Appellate Authority and not before or by this Court, in proceedings under Article 226 of the Constitution of India. In view of what has been stated hereinabove, we dismiss the writ petition, with liberty to the petitioner to file appeal before the Appellate Authority and raise all the pleas that have been raised in this petition. The Appellate Authority shall, if such an appeal is filed, decide whether the Assessing Officer has jurisdiction to call for a report from the departmental Valuation Officer and if so empowered, the evidentiary value of such a report. The Appellate Authority shall also consider the ratio of the judgment in Amiya Bala Paul Versus Commissioner of Income Tax, Shillong (supra). No order as to costs. (Rajive Bhalla) Judge (Dr. Bharat Bhushan Parsoon) Judge August 31, 2013 'Yag Dutt' Yag Dutt 2013.09.05 15:33 I attest to the accuracy and integrity of this document "